Prohibited Transfers. (a) In the event any Founder should sell any Founders Shares in contravention of the co-sale rights of the Investors under Section 5 (a “Prohibited Transfer”), the Investors, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder shall be bound by the applicable provisions of such option. (b) In the event of a Prohibited Transfer, each Eligible Investor shall have the right to sell to the Founder the type and number of shares of Common Stock equal to the number of shares that such Eligible Investor would have been entitled to transfer to the third-party transferee(s) under Section 5.2 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereof. Such sale shall be made on the following terms and conditions: (i) The price per share at which the shares are to be sold to the Founder shall be equal to the price per share paid by the third-party transferee(s) to the Founder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder shall also reimburse each Eligible Investor for any and all fees and expense, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s rights under Section 5. (ii) Within thirty (30) days after the later of the dates on which the Eligible Investor (A) received notice of the Prohibited Transfer or (B) otherwise became aware of the Prohibited Transfer, each Eligible Investor shall, if exercising the option created hereby, deliver to the Founder the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer. (iii) The Founder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor pursuant to this Section 5, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(i), in cash or by other means acceptable to the Eligible Investor. (c) Notwithstanding the foregoing, any attempt by a Founder to transfer Founders Shares in violation of Section 5 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder of such shares, without the written consent of two-thirds (2/3) in interest of the Eligible Investors.
Appears in 6 contracts
Samples: Investor Rights Agreement (Fluidigm Corp), Investor Rights Agreement (Fluidigm Corp), Series E Preferred Stock Purchase Agreement (Fluidigm Corp)
Prohibited Transfers. (a) 5.1 In the event any Founder should sell Offeror sells any Founders Shares in contravention of the coCo-sale rights Sale Rights of the Investors under Section 5 3 (a “Prohibited Transfer”), the Investors, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Investor shall have the right (the “Put Right”) to sell to the Founder Offeror, and the type and Offeror shall be obligated to purchase from each Investor who validly exercises a Put Right, a number of shares of Common Stock Shares equal to the number of shares that Shares such Eligible Investor would have been entitled to transfer to the third-party transferee(s) purchaser in the Prohibited Transfer under Section 5.2 3 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereof. Such hereof.
5.2 A sale pursuant to the exercise of a Put Right shall be made on the following terms and conditions:
(ia) The price per share at which the shares are to be sold Offeror must purchase the Shares subject to the Founder Put Right shall be equal to the price per share paid by the third-party transferee(s) purchaser to the Founder Offeror in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder shall also reimburse each Eligible Investor for any and all fees and expense, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s rights under Section 5.
(iib) Within thirty (30) 90 days after the later of (i) the dates date on which the Eligible an Investor (A) received notice receives Notice of the Prohibited Transfer or (Bii) the date on which an Investor otherwise became becomes aware of the Prohibited Transfer, each Eligible Investor shall, if exercising the option Put Right created hereby, deliver to the Founder Offeror the certificate or certificates representing shares the Shares to be sold, in the form of Common Stock certificates, Series A-1 Convertible Preferred Stock certificates (and, as applicable, the Series A Shares certificates), or any combination, at the Investor’s option, each certificate to be properly endorsed for transfer.
(iiic) The Founder Offeror shall, upon receipt of the certificate or certificates for the shares Shares to be sold by an Eligible Investor pursuant to this Section 55.2, pay the aggregate purchase price therefor and the amount of reimbursable fees and expensestherefor, as specified in subparagraph 5.5(b)(iSection 5.2(a), in cash or by other means acceptable to the Eligible Investor.
(c) Notwithstanding . The Offeror shall also reimburse the foregoingInvestor for any and all reasonable fees and expenses, any attempt by a Founder including reasonable legal fees and expenses, incurred pursuant to transfer Founders Shares in violation of Section 5 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder exercise of such shares, without the written consent of two-thirds (2/3) in interest of the Eligible InvestorsInvestor’s rights hereunder.
Appears in 4 contracts
Samples: Right of First Refusal and Co Sale Agreement (Miramar Venture Partners, LP), Right of First Refusal and Co Sale Agreement (Innovative Micro Technology Inc), Right of First Refusal and Co Sale Agreement (Investor Ab)
Prohibited Transfers. (a) Except as otherwise provided in this Agreement, each Common Holder will not sell, assign, transfer, pledge, hypothecate or otherwise encumber or dispose of in any way, all of, any part of or any interest in such Common Holder’s Equity Securities. Any sale, assignment, transfer, pledge, hypothecation or other encumbrance or disposition of Equity Securities not made in conformance with this Agreement shall be null and void, shall not be recorded on the books of the Company and shall not be recognized by the Company.
(b) In the event any Founder a Common Holder should sell any Founders Shares Equity Securities in contravention of the co-sale rights of the Investors Holders under Section 5 2.2 (a “Prohibited Transfer”), the InvestorsHolders, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided belowbelow under Section 2.5(c), and the Founder such Common Holder shall be bound by the applicable provisions of such option.
(bc) In the event of a Prohibited Transfer, each Eligible Investor Holder shall have the right to sell to the Founder Common Holder making such Prohibited Transfer the type and number of shares of Common Stock Equity Securities equal to the number of shares that such Eligible Investor each Holder would have been entitled to transfer to the third-party transferee(s) under Section 5.2 2.2 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder Common Holder shall be equal to the price per share paid by the third-party transferee(s) to the Founder Common Holder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Common Holder shall also reimburse each Eligible Investor Holder for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible InvestorHolder’s rights under Section 52.2.
(ii) Within thirty (30) days [***] after the later of (A) the dates date on which the Eligible Investor (A) received Holder receives notice of the Prohibited Transfer or and (B) the date on which the Holder otherwise became becomes aware of the Prohibited Transfer, each Eligible Investor Holder shall, if exercising the option created hereby, deliver to the Founder Common Holder the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder Common Holder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor a Holder pursuant to this Section 52.5, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(i), expenses reimbursable under Section 2.5(c)(i) in cash or by other means acceptable to the Eligible InvestorHolder.
(c) Notwithstanding the foregoing, any attempt by a Founder to transfer Founders Shares in violation of Section 5 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder of such shares, without the written consent of two-thirds (2/3) in interest of the Eligible Investors.
Appears in 4 contracts
Samples: First Refusal and Co Sale Agreement (PureTech Health PLC), First Refusal and Co Sale Agreement (PureTech Health PLC), First Refusal and Co Sale Agreement (PureTech Health PLC)
Prohibited Transfers. (a) In the event any Founder a Significant Shareholder should sell any Founders Shares Stock in contravention of the co-sale rights of the Investors ASI under Section 5 this Agreement (a “"Prohibited Transfer”"), the InvestorsASI, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder Significant Shareholders shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Investor ASI shall have the right to sell to the Founder Significant Shareholders the type and number of shares of Common Stock equal to the number of shares that such Eligible Investor ASI would have been entitled to transfer to the third-party transferee(s) under Section 5.2 hereof purchaser had the Prohibited Transfer under Section 2(c) hereof been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder Significant Shareholders shall be equal to the price per share paid by the third-party transferee(s) purchaser to the Founder Significant Shareholders in the this Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Significant Shareholders shall also reimburse each Eligible Investor ASI for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s ASI's rights under Section 52.
(ii) Within thirty ninety (3090) days after the later of the dates on which the Eligible Investor ASI (A) received notice of the Prohibited Transfer or (B) otherwise became aware of the Prohibited Transfer, each Eligible Investor ASI shall, if exercising the option created hereby, deliver to the Founder Significant Shareholders the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder Significant Shareholders shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor ASI, pursuant to this Section 54(b), pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(iSection 5(b)(i), in cash or by other means acceptable to the Eligible InvestorASI.
(civ) Notwithstanding the foregoing, any attempt by a Founder Significant Shareholder to transfer Founders Shares Stock in violation of Section 5 2 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) transferee as the holder of such shares, shares without the written consent of two-thirds (2/3) in interest of the Eligible InvestorsASI.
Appears in 3 contracts
Samples: Investment and Voting Agreement (Asi Group LLC), Co Sale Agreement (Las Vegas Discount Golf & Tennis Inc), Co Sale Agreement (Asi Group LLC)
Prohibited Transfers. (a) In the event any Founder Mandarin should sell any Founders Shares Co-Sale Stock in contravention of the co-sale rights of the Investors Obagi under Section 5 this Agreement (a “Prohibited Transfer”), the Investors, Obagi in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder Mandarin shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Investor Obagi shall have the right to sell to the Founder Mandarin the type and number of shares of Common Co-Sale Stock equal to the number of shares that such Eligible Investor Obagi would have been entitled to transfer to the third-party transferee(s) purchaser under Section 5.2 4.1 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder Mandarin shall be equal to the price per share paid by the third-party transferee(s) purchaser to the Founder Mandarin in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder shall also reimburse each Eligible Investor for any and all fees and expense, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s rights under Section 5.
(ii) Within thirty (30) days after the later of the dates on which the Eligible Investor Obagi (A) received notice of the Prohibited Transfer or (B) otherwise became become aware of the Prohibited Transfer, each Eligible Investor Obagi shall, if exercising the option created hereby, deliver to the Founder Mandarin the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder Mandarin shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor Obagi, pursuant to this Section 54.3, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(i)therefor, in cash or by other means acceptable to the Eligible InvestorObagi.
(civ) Notwithstanding the foregoing, any attempt by a Founder Mandarin to transfer Founders Shares Co-Sale Stock in violation of Section 5 4 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) transferee as the holder of such shares, shares without the written consent of two-thirds (2/3) in interest of the Eligible InvestorsObagi.
Appears in 3 contracts
Samples: Investors’ Rights Agreement (Obagi Medical Products, Inc.), Investors’ Rights Agreement (Obagi Medical Products, Inc.), Investors’ Rights Agreement (Obagi Medical Products, Inc.)
Prohibited Transfers. (a) In the event that a Transferring Member should Transfer any Founder should sell any Founders Shares in contravention of the coCo-sale rights Sale Rights of the Investors an Investor under Section 5 12.01(e) (a “Prohibited Transfer”), the Investorssuch Investor, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder such Transferring Member shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Investor shall have the right to sell to the Founder the type and number of shares of Common Stock equal to such Transferring Member the number of shares Shares that such Eligible Investor would have been entitled to transfer to the third-party transferee(s) purchaser under Section 5.2 12.01(e) hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares Shares are to be sold to the Founder Transferring Member shall be equal to the price per share paid by the third-party transferee(s) purchaser to the Founder such Transferring Member in the such Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Transferring Member shall also reimburse each Eligible Investor for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible such Investor’s rights under Section 512.01(e).
(ii) Within thirty (30) 90 days after the later of the dates date on which the Eligible an Investor (A) received notice of the Prohibited Transfer or (B) otherwise became aware of the Prohibited Transfer, each Eligible such Investor shall, if exercising the option created hereby, deliver to the Founder Transferring Member the certificate or certificates (if any) representing shares securities to be sold, each certificate to be properly endorsed for transfer, provided, however, that if such securities are not certificated, then such Investor shall exercise such rights by delivering written notice to the LLC and the Transferring Member.
(iii) The Founder Transferring Member shall, upon receipt of the certificate or certificates for the shares securities to be sold by an Eligible Investor pursuant to this Section 512.03(b), or, if securities are not certificated, exercise notice from an Investor as described in Section 12.03(b)(ii), pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(iSection 12.03(b)(i), in cash or by other means acceptable to the Eligible such Investor.
(civ) Notwithstanding the foregoing, any attempt by a Founder the Transferring Member to transfer Founders Transfer Shares in violation of Section 5 12.01(e) hereof shall be void and voidable at the Company option of the Requisite Preferred Holders if they do not elect to exercise the put option set forth in Section 12.03(b). The LLC agrees it will not effect such a transfer nor will it Prohibited Transfer or treat any alleged transferee(s) transferee as the holder of such shares, without the written consent of two-thirds (2/3) in interest of the Eligible InvestorsShares if such Requisite Preferred Holders so object.
Appears in 3 contracts
Samples: Operating Agreement (Arvinas Holding Company, LLC), Operating Agreement (Arvinas Holding Company, LLC), Operating Agreement (Arvinas Holding Company, LLC)
Prohibited Transfers. (a) In the event any Founder that the Shareholder should sell any Founders Shares in contravention of the co-sale rights of the Investors each Preferred Holder under Section 5 this Agreement (a “"Prohibited Transfer”"), the Investorseach Preferred Holder, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder such Shareholder shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Investor Preferred Holder shall have the right to sell to the Founder such Shareholder the type and number of shares of Common Stock equal to the number of shares that such Eligible Investor each Preferred Holder would have been entitled to transfer to the third-party transferee(s) Buyer under Section 5.2 2.1 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder Shareholder shall be equal to the price per share paid by the third-party transferee(s) Buyer to the Founder such Shareholder in the such Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Shareholder shall also reimburse each Eligible Investor Preferred Holder for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s Preferred Holder's rights under Section 5this Article II.
(ii) Within thirty ninety (3090) days after the later of the dates date on which the Eligible Investor (A) a Preferred Holder received notice of the Prohibited Transfer or (B) otherwise became aware of the Prohibited Transfer, each Eligible Investor such Preferred Holder shall, if exercising the option created hereby, deliver to the Founder Shareholder the certificate or certificates representing the shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder Such Shareholder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor a Preferred Holder, pursuant to this Section 52.5(b), pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(iSection 2.5(b)(i), in cash or by other means acceptable to the Eligible InvestorPreferred Holder.
(civ) Notwithstanding the foregoing, any attempt by a Founder the Shareholder to transfer Founders Shares in violation of Section 5 Article II hereof shall be void voidable at the option of a majority in interest of the Preferred Holders if the Preferred Holders do not elect to exercise the put option set forth in this Section 2.5, and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) transferee as the holder of such shares, shares without the written consent of two-thirds (2/3) a majority in interest of the Eligible InvestorsPreferred Holders.
Appears in 3 contracts
Samples: Series C Convertible Preferred Stock Purchase Agreement (Inventa Technologies Inc), Series D Convertible Preferred Stock Purchase Agreement (Inventa Technologies Inc), Shareholder Agreement (Inventa Technologies Inc)
Prohibited Transfers. (a) Any attempt by a Founder to transfer shares of -------------------- the Company in violation of Section 1 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee as the holder of such shares. In the event any Founder should sell any Founders Shares in contravention of the co-sale rights of the Investors under Section 5 (a “Prohibited Transfer”), the Investors, in addition to other such other remedies as may be available at law, in equity or hereunder, the Major Investors shall have the put option provided below, and such Founder (the Founder "Violating Founder") shall be bound by the applicable provisions of such option.
(ba) In the event of a Prohibited Transfer, each Eligible Major Investor shall have the right to sell to the Violating Founder its pro rata portion of the type and number of shares of Common Stock Shares equal to the number of shares that such Eligible Major Investor would have been entitled to transfer to the third-party transferee(s) under Section 5.2 1(b) hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Violating Founder shall be equal to the price per share paid by the third-third- party transferee(stransferees(s) to the such Founder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Violating Founder shall also reimburse each Eligible Major Investor for any and all reasonable fees and expenseexpenses, including reasonable legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s 's rights under Section 51(b).
(ii) Within thirty (30) days after the later of the dates on which the Eligible Major Investor (A) received notice of the Prohibited Transfer or (B) otherwise became aware of the Prohibited Transfer, each Eligible Major Investor shall, if exercising the option created hereby, deliver to the Violating Founder the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Violating Founder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible a Major Investor pursuant to this Section 52, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(i)Section 2.1(b)(i) above, in cash or by other means reasonably acceptable to the Eligible Major Investor.
(civ) Notwithstanding the foregoing, any attempt by a the Violating Founder to transfer Founders Shares in violation of Section 5 1 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(stransferees(s) as the holder owner of such shares, shares without the written consent of two-thirds (2/3) in interest of the Eligible Major Investors.
Appears in 3 contracts
Samples: Series D Preferred Stock Purchase Agreement (Avantgo Inc), Right of First Refusal and Co Sale Agreement (Avantgo Inc), Right of First Refusal and Co Sale Agreement (Avantgo Inc)
Prohibited Transfers. (a) In the event that the Transferring Holders should transfer any Founder should sell any Founders Shares Subject Securities in contravention of the co-sale rights of the Investors each Major Investor under Section 5 this Agreement (a “Prohibited Transfer”), the Investorseach Major Investor, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder such Transferring Holders shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Major Investor shall have the right to sell to the Founder such Transferring Holders the type and number of shares of Common Stock (as converted from Preferred Stock, if applicable, in accordance with the timing and procedures set forth in Section 4.3) equal to the number of shares that such Eligible each Major Investor would have been entitled to transfer to the third-party transferee(s) purchaser under Section 5.2 4.3 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder Transferring Holders shall be equal to the price per share paid by the third-party transferee(s) purchaser to the Founder such Transferring Holders in the such Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Transferring Holders shall also reimburse each Eligible Major Investor for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Major Investor’s rights under Section 54.3.
(ii) Within thirty ninety (3090) days after the later of the dates date on which the Eligible a Major Investor (A) received notice of the Prohibited Transfer or (B) otherwise became aware of the Prohibited Transfer, each Eligible such Major Investor shall, if exercising the option created hereby, deliver to the Founder Transferring Holders the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder Such Transferring Holders shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor Major Investor, pursuant to this Section 54.4, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(i)Section 4.3, as evidenced by written receipts or invoices setting forth such reimbursable fees and expenses, in cash or by other means acceptable to the Eligible Major Investor.
(c) Notwithstanding the foregoing, any attempt by a Founder the Transferring Holders to transfer Founders Shares Subject Securities in violation of Section 5 4.3 hereof shall be void voidable at the option of Major Investors holding at least a majority of the Subject Securities held by the Major Investors and their assignees, where the Major Investors holding such Subject Securities shall vote on an as-converted basis giving effect to price based anti-dilution that occurs at any time after the date hereof (a “Major Investor Majority”). If the Major Investors do not elect to exercise the put option set forth in this Section 4.5, the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) transferee as the holder of such shares, shares without the written consent of two-thirds (2/3) in interest of the Eligible Investorsan Other Holder Majority.
Appears in 3 contracts
Samples: Investors’ Rights Agreement (AEON Biopharma, Inc.), Investors’ Rights Agreement (AEON Biopharma, Inc.), Investors’ Rights Agreement (AEON Biopharma, Inc.)
Prohibited Transfers. (aA) In the event any Founder Kanghui Party should sell any Founders Shares Equity Securities in contravention of the co-sale rights of the Investors Preferred Shareholders under Section 5 2.3 (a “Prohibited Transfer”), the InvestorsPreferred Shareholders, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder such Kanghui Party shall be bound by the applicable provisions of such option.
(bB) In the event of a Prohibited Transfer, each Eligible Investor Preferred Shareholder shall have the right to sell to the Founder such Kanghui Party the type and number of shares of Common Stock Equity Securities equal to the number of shares that Equity Securities such Eligible Investor Preferred Shareholder would have been entitled to transfer to the third-party transferee(s) under Section 5.2 2.3 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder such Kanghui Party shall be equal to the price per share paid by the third-party transferee(s) to the Founder such Kanghui Party in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Kanghui Party shall also reimburse each Eligible Investor Preferred Shareholder for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investorsuch Preferred Shareholder’s rights under Section 52.
(ii) Within thirty ninety (3090) days after the later of the dates on which the Eligible Investor Preferred Shareholder (A) received notice of the Prohibited Transfer or (B) otherwise became becomes aware of the Prohibited Transfer, each Eligible Investor such Preferred Shareholder shall, if exercising the option created hereby, deliver to the Founder such Kanghui Party the certificate or certificates representing shares to be soldsold under this Section 2.5 by such Preferred Shareholder, each certificate to be properly endorsed for transfer.
(iii) The Founder Such Kanghui Party shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor a Preferred Shareholder, pursuant to this Section 52.5, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(iclause (i), in cash or by other means acceptable to the Eligible InvestorPreferred Shareholder.
(civ) Notwithstanding the foregoing, any attempt by a Founder Kanghui Party to transfer Founders Shares Transfer Equity Securities in violation of this Section 5 hereof 2 shall be void void, and the Company agrees it will not effect such a transfer Transfer nor will it treat any alleged transferee(s) as the holder of such shares, shares without the written consent of two-thirds (2/3) a majority in interest of the Eligible InvestorsPreferred Shareholders.
Appears in 2 contracts
Samples: Right of First Refusal and Co Sale Agreement, Series B Preferred Right of First Refusal and Co Sale Agreement (China Kanghui Holdings)
Prohibited Transfers. (a) In the event any Founder Restricted Shareholders (a “Violating Shareholder”) should sell any Founders Common Shares or Preferred Shares in contravention of the co-sale rights of the Investors Preferred Shareholders under Section 5 2.4 (a “Prohibited Transfer”), the InvestorsPreferred Shareholders, in addition to such other remedies as may be available at lawLaw, in equity or hereunder, shall have the put option provided below, and the Founder such Violating Shareholder shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Investor Preferred Shareholder shall have the right to sell to the Founder the type and Violating Shareholder a number of shares Common Shares (or Preferred Shares convertible into such number of Common Stock Shares) equal to the number of shares that Common Shares (or Preferred Shares, as the case may be) such Eligible Investor Preferred Shareholder would have been entitled to transfer to the third-party transferee(sTransferee(s) under Section 5.2 2.4 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder Violating Shareholder shall be equal to the price per share paid by the third-party transferee(sTransferee(s) to the Founder Violating Shareholder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Violating Shareholder shall also reimburse each Eligible Investor Preferred Shareholder for any and all fees and expense, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investorsuch Preferred Shareholder’s rights under Section 52.
(ii) Within thirty ninety (3090) days after the later earlier of the dates on which the Eligible Investor each Preferred Shareholder (A) received notice of the Prohibited Transfer or (B) otherwise became becomes aware of the Prohibited Transfer, each Eligible Investor such Preferred Shareholder shall, if exercising the option created hereby, deliver to the Founder Violating Shareholder the certificate or certificates representing shares to be soldsold under this Section 2.8 by such Preferred Shareholder, each certificate to be properly endorsed for transfer. The Company shall take such steps as are necessary in order to update the share register of the Company to reflect the foregoing, which updated share register shall be certified by the registered agent of the Company and provided to any party hereto upon written request.
(iii) The Founder Violating Shareholder shall, upon against receipt of the certificate or certificates for the shares and the updated certified share register to be sold by an Eligible Investor a Preferred Shareholder, pursuant to this Section 52.8, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(iSection 2.8(b)(i), in cash or by other means acceptable to the Eligible InvestorPreferred Shareholder.
(c) Notwithstanding the foregoing, any attempt by a Founder any Restricted Shareholder to transfer Founders Common Shares or Preferred Shares in violation of this Section 5 hereof 2 shall be void void, and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder holder(s) of such shares, shares without the written consent of two-thirds (2/3) in interest of the Eligible InvestorsMajority Preferred Holders.
Appears in 2 contracts
Samples: Shareholders Agreement, Shareholders Agreement (iKang Healthcare Group, Inc.)
Prohibited Transfers. (a) In the event of any Founder should sell sale or purported sale (including, without limitation, the entering into of any Founders agreement, arrangement or understanding to sell) of Co-Sale Shares by any Principal Shareholder in contravention of the co-sale rights of the Investors under Section 5 Purchaser hereunder (a “Prohibited Transfer”), the InvestorsPurchaser shall have, in addition to such all other rights, powers or remedies as may be available at law, in equity equity, under this Agreement or hereunderany other Investment Document or under Applicable Law, shall have the put option provided right to exercise the Prohibited Transfer Put (as such term is defined below), and the Founder such Principal Shareholder agrees that he shall be bound by the applicable provisions of such optionhereof.
(b) In the event of a Prohibited TransferTransfer by a Principal Shareholder:
(1) The Parent shall, each Eligible Investor shall have upon the request of Purchaser, instruct the Parent’s transfer agent not to enter such Prohibited Transfer on the stock ledger or other similar records of the Parent; and
(2) Purchaser may exercise a right (the “Prohibited Transfer Put”) to sell require such Principal Shareholder to the Founder the type and purchase a number of shares of Common Stock owned by Purchaser or purchase the Warrant with respect to Warrant shares equal to the number of shares that such Eligible Investor or Warrant Shares Purchaser would have been entitled to transfer sell to the third-party transferee(s) purchaser under Section 5.2 hereof 1.2 had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(iA) The price per share at which the shares are to be sold to the Founder such Principal Shareholder shall be equal to the price per share paid by the third-party transferee(s) purchaser to the Founder such Principal Shareholder in the Prohibited Transfer, subject to reduction of the proceeds receivable by the Purchaser of the Warrant Purchase Price with respect to Warrant Shares issuable upon exercise of the Warrant. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Principal Shareholder shall also reimburse each Eligible Investor Purchaser for any and all fees and expenseexpenses, including legal fees attorneys, accountants and other expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible InvestorPurchaser’s rights under Section 5.1;
(iiB) Within thirty (30) days after the later of the dates on which the Eligible Investor Purchaser (Ax) received notice of the Prohibited Transfer or (By) otherwise became aware of the Prohibited Transfer, each Eligible Investor Purchaser shall, if exercising the option created herebyProhibited Transfer Put, deliver to such Principal Shareholder the Founder the Warrant or certificate or certificates representing the shares to be sold, each Warrant or certificate to be properly endorsed for transfer.;
(iiiC) The Founder Such Principal Shareholder shall, upon receipt of the certificate or certificates for representing the Warrant or shares to be sold by an Eligible Investor pursuant to this Section 5Purchaser, pay to Purchaser the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(iSection 1.8(b)(2)(A), by wire transfer in cash or by other means acceptable to the Eligible Investor.
(c) immediately available funds; and Notwithstanding the foregoing, any attempt by a Founder such Principal Shareholder to transfer Founders any Co-Sale Shares in violation of Section 5 hereof 1 shall be void and the Company Parent agrees that it will not effect such a transfer nor will it treat any alleged transferee(s) transferee as the holder of such shares, shares without the written consent of two-thirds (2/3) in interest of the Eligible InvestorsPurchaser.
Appears in 2 contracts
Samples: Investor Rights Agreement (Levine Leichtman Capital Partners Iii Lp), Investor Rights Agreement (Butler International Inc /Md/)
Prohibited Transfers. (a) In the event any a Founder should sell any Founders Co-Sale Shares in contravention of the co-sale participation rights of the Investors Purchasers under Section 5 this Agreement (a “"Prohibited Transfer”"), the Investors, in addition to such other remedies as may be available at law, in equity or hereunder, Purchasers shall have the put option provided in Section 3(b) below, and the Founder shall be bound by the applicable provisions of such put option.
(b) In the event of a Prohibited Transfer, each Eligible Investor Purchaser shall have the right option to sell to the Founder the type and a number of shares of Common Stock Equivalents of the Company equal (after giving effect to any stock dividends, stock splits or other recapitalization) to the number of shares that such Eligible Investor Purchaser would have been entitled to transfer to sell if the third-party transferee(s) under Section 5.2 hereof Founder had the Prohibited Transfer been effected pursuant to and in compliance complied with the terms thereof. Such sale shall be made provisions of Section 2 on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder shall be equal to the price per share paid by the third-third party transferee(s) purchaser or purchasers to the Founder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder shall also reimburse each Eligible Investor for any and all fees and expense, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s rights under Section 5Founder.
(ii) Within thirty The Purchaser shall deliver to the Founder, within ten (3010) days after the later of the dates on which the Eligible Investor (A) it has received written notice of the Prohibited Transfer or (B) otherwise became aware of the Prohibited Transfer, each Eligible Investor shall, if exercising the option created hereby, deliver to the Founder the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder shall, upon receipt of the certificate or certificates for the shares subject to be sold by an Eligible Investor pursuant to this Section 5the put option, pay the aggregate Section 3(b) purchase price therefor therefor, by certified check or bank draft made payable to the order of the Participants exercising the Section 3(b) option, and shall reimburse the amount of reimbursable Participants for any additional expenses, including legal fees and expenses, as specified incurred in subparagraph 5.5(b)(i)effecting such purchase and resale.
(iv) The parties agree that the foregoing is a liquidated damages provision, and not a penalty, which is reasonable in cash or by other means acceptable to light of the Eligible Investordifficulty of determining damages for the breach hereof.
(c) Notwithstanding the foregoing, any attempt by a Founder to transfer Founders Shares shares of the Company in violation of Section 5 2 hereof shall be void void, and the Company agrees that it will not effect such a transfer nor will it treat any alleged transferee(s) transferee as the holder of such shares, shares without the written consent of two-thirds (2/3) in interest the number of the Eligible InvestorsFounders and Purchasers having the right to amend this Co-Sale Agreement as provided below.
Appears in 2 contracts
Samples: Co Sale Agreement (Avanex Corp), Co Sale Agreement (Avanex Corp)
Prohibited Transfers. (a) In the event that any Founder party should sell any Founders Shares Co-Sale Stock (i) in contravention of the coCo-sale rights Sale Rights of the Investors under this Section 5 2 or (ii) in a transaction in which the Significant Holder and the Company have fulfilled their respective obligations under this Section 2, but the third-party transferee failed to purchase the appropriate number of shares of Stock from one or more Investors (each, a “Prohibited Transfer”), the InvestorsInvestors prejudiced by such failure, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder Significant Holder shall be bound by the applicable provisions of such option.
(b) In the event the Significant Holder or the Company becomes aware of a Prohibited Transfer (including by receipt of a Put Election Notice, as described below), the Significant Holder or the Company, as applicable, shall promptly notify each Investor (a “Prohibited Transfer Notice”), such Prohibited Transfer Notice to contain a reasonably detailed summary of the relevant facts of such Prohibited Transfer, to the extent actually known by the Significant Holder or the Company.
(c) In the event of a Prohibited Transfer, each Eligible Investor shall have the right to sell to the Founder Significant Holder the type and number of shares of Common Stock the Company’s securities equal to the number of shares that such Eligible Investor would have been entitled to transfer to the third-party transferee(s) under this Section 5.2 hereof 2 had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof (after giving effect to the proviso contained in the second sentence of Section 2.2 above). Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares of Stock are to be sold to the Founder Significant Holder shall be equal to the price per share paid by the third-party transferee(s) to the Founder Significant Holder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder shall also reimburse each Eligible Investor for any and all fees and expense, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s rights under Section 5.
(ii) Within thirty (30) days after the later of the dates on which the Eligible such Investor (A) received notice of the Prohibited Transfer Notice or (B) otherwise became aware of the Prohibited TransferTransfer (the “Put Election Period”), each Eligible such Investor shall, if exercising the option created hereby, deliver to the Founder Significant Holder and the certificate or certificates representing shares Company an irrevocable written notice of such Investor’s election to be sold, each certificate to be properly endorsed for transferexercise the option set forth in this Section 2.5 (a “Put Election Notice”).
(iii) The Founder shall, upon receipt Upon the expiration of the Put Election Period, the Significant Holder will notify the Investors who have exercised their rights pursuant to this Section 2.6 of the time of closing the sale of shares of Stock pursuant to this Section 2.6 and within five (5) business days following the expiration of the Put Election Period, the Significant Holder shall pay the aggregate purchase price to each Investor that has properly delivered a Put Election Notice in cash or by other means acceptable to such Investors and such Investors shall deliver such certificate or certificates for the shares to be sold by an Eligible Investor such Investors pursuant to this Section 5, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(i), in cash or by other means acceptable to the Eligible Investor.
(c) 2.5 against payment therefor. Notwithstanding the foregoing, any attempt by a Founder the Significant Holder to transfer Founders Shares Co-Sale Stock in violation of this Section 5 2 hereof shall be void and the Company agrees that it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder owner of such shares, shares without the written consent of two-thirds (2/3) in interest each of the Eligible Investors.
Appears in 2 contracts
Samples: Co Sale and Stock Restriction Agreement, Co Sale and Stock Restriction Agreement (HUGHES Telematics, Inc.)
Prohibited Transfers. (a) In the event any Founder that a Restricted Holder should sell any Founders Shares equity securities in contravention of the first refusal rights or co-sale rights of the Investors Preferred Stockholders under Section 5 3.2(a) or Section 3.2(b) (a “Prohibited Transfer”), the InvestorsPreferred Stockholders, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the call option and put option provided belowunder this Section 3.2(d), and the Founder Restricted Holder shall be bound by the applicable provisions of such option.
(b) . In the event of a Prohibited TransferTransfer in violation of the first refusal rights of the Preferred Stockholders, each Eligible Investor Preferred Stockholder shall have the right to send to such Transferring Stockholder the purchase price for such Offered Securities as is herein specified and transfer to the name of such Preferred Stockholder (or request that the Company effect such transfer in the name of a Preferred Stockholder) on the Company’s books any certificates, instruments, or book entry representing the Offered Securities to be sold. In the event of a Prohibited Transfer in violation of the co-sale rights of the Preferred Stockholders, each Preferred Stockholder shall have the right to sell to the Founder Restricted Holder making such Prohibited Transfer the type and number of shares of Common Stock equity securities equal to the number of shares that such Eligible Investor each Preferred Stockholder would have been entitled to transfer to the third-party transferee(s) under this Section 5.2 hereof 3.2 had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall will be made on the following same terms and conditionssubject to the same conditions as would have applied had the Restricted Holder not made the Prohibited Transfer, including that:
(i) The price per share at which the shares are to be sold to the Founder Restricted Holder shall be equal to the price per share paid by the third-party transferee(s) to the Founder Restricted Holder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Restricted Holder shall also reimburse each Eligible Investor Preferred Stockholder for any and all reasonable and documented out-of-pocket fees and expenseexpenses, including reasonable legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible InvestorPreferred Stockholder’s rights under this Section 53.2.
(ii) Within thirty ninety (3090) days after the later of the dates date on which the Eligible Investor Preferred Stockholder (A) received receives notice of the Prohibited Transfer or (B) otherwise became becomes aware of the Prohibited Transfer, each Eligible Investor Preferred Stockholder shall, if exercising the option created hereby, deliver to the Founder Restricted Holder the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder Restricted Holder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor a Preferred Stockholder pursuant to this Section 53.2(d), pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(iSection 3.2(d)(i), in cash or by other means acceptable to the Eligible InvestorPreferred Stockholder.
(c) Notwithstanding the foregoing, any attempt by a Founder to transfer Founders Shares in violation of Section 5 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder of such shares, without the written consent of two-thirds (2/3) in interest of the Eligible Investors.
Appears in 2 contracts
Samples: Stockholders Agreement, Stockholders Agreement (Neuronetics, Inc.)
Prohibited Transfers. (a) Except as otherwise provided in this Agreement, each Common Holder and Investor will not sell, assign, transfer, pledge, hypothecate or otherwise encumber or dispose of in any way, all of any part of or any interest in the Equity Securities. Any sale, assignment, transfer, pledge, hypothecation or other encumbrance or disposition of Equity Securities not made in conformance with this Agreement shall be null and void, shall not be recorded on the books of the Company and shall not be recognized by the Company.
(b) In the event any Founder the Common Holder or Investor should sell any Founders Shares Equity Securities in contravention of the co-sale rights of the Investors Holders under Section 5 2.2 (a “Prohibited Transfer”), the InvestorsHolders, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided belowbelow under subsection (c), and the Founder Common Holder and Investor shall be bound by the applicable provisions of such option.
(bc) In the event of a Prohibited Transfer, each Eligible Investor Holder shall have the right to sell to the Founder Common Holder and Investor the type and number of shares of Common Stock Equity Securities equal to the number of shares that such Eligible Investor each Holder would have been entitled to transfer to the third-party transferee(s) under Section 5.2 2.2 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder Common Holder and Investor shall be equal to the price per share paid by the third-party transferee(s) to the Founder Common Holder and Investor in the Prohibited Transfer. Such price per share shall be paid to the Eligible The Common Holder and Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder shall also reimburse each Eligible Investor Holder for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible InvestorHolder’s rights under Section 52.2.
(ii) Within thirty ninety (3090) days after the later of the dates date on which the Eligible Investor Holder (A) received receives notice of the Prohibited Transfer or (B) otherwise became becomes aware of the Prohibited Transfer, each Eligible Investor Holder shall, if exercising the option created hereby, deliver to the Founder Common Holder and Investor the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder Common Holder and Investor shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor a Holder pursuant to this Section 52.5, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(isubsection 2.5(c)(i), in cash or by other means acceptable to the Eligible InvestorHolder.
(cd) Notwithstanding Except as provided in Sections 2.4 and 2.6 hereof, no Common Holder or Investor shall transfer shares of Common Stock, or options or warrants exerciseable for shares of Common Stock, until the foregoingRelease Date. Following the Release Date all Transfers of shares of Common Stock, any attempt by a Founder to transfer Founders Shares in violation or options or warrants exercisable for shares of Section 5 hereof Common Stock, shall be void subject to the first refusal rights of the Company and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder of such shares, without the written consent of twofirst refusal and co-thirds (2/3) in interest sale rights of the Eligible InvestorsHolders set forth in Sections 2.1 and 2.2 hereof.
Appears in 2 contracts
Samples: Stock Restriction, First Refusal and Co Sale Agreement (Synacor, Inc.), Stock Restriction, First Refusal and Co Sale Agreement (Synacor, Inc.)
Prohibited Transfers. (a) In the event any Founder the Key Common Holder should sell any Founders Shares Equity Securities in contravention of the co-sale rights of the Investors Holders under Section 5 3.2 (a “Prohibited Transfer”), the InvestorsHolders, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder Key Common Holder shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Investor Holder shall have the right to sell to the Founder Key Common Holder the type and number of shares of Common Stock Equity Securities equal to the number of shares that such Eligible Investor each Holder would have been entitled to transfer to the third-party transferee(s) under Section 5.2 3.2 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder Key Common Holder shall be equal to the price per share paid by the third-party transferee(s) to the Founder Key Common Holder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Key Common Holder shall also reimburse each Eligible Investor Holder for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible InvestorHolder’s rights under Section 53.
(ii) Within thirty ninety (3090) days after the later of the dates on which the Eligible Investor Holder (A) received receives notice of the Prohibited Transfer or (B) otherwise became becomes aware of the Prohibited Transfer, each Eligible Investor Holder shall, if exercising the option created hereby, deliver to the Founder Key Common Holder the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder Key Common Holder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor a Holder, pursuant to this Section 53.5, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(i3.5(b)(i), in cash or by other means acceptable to the Eligible InvestorHolder.
(civ) Notwithstanding the foregoing, any attempt by a Founder the Key Common Holder to transfer Founders Shares Equity Securities in violation of Section 5 3 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder of such shares, shares without the written consent of two-thirds (2/3) a majority in interest of the Eligible InvestorsHolders.
Appears in 2 contracts
Samples: Right of First Refusal and Co Sale Agreement (Kalobios Pharmaceuticals Inc), Right of First Refusal and Co Sale Agreement (Kalobios Pharmaceuticals Inc)
Prohibited Transfers. (a) In the event a Selling Shareholder sells any Founder should sell any Founders Offered Shares in contravention of the co-sale rights of the Investors Holders under Section 5 6 hereof (a “Prohibited Transfer”), the InvestorsHolders, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder such Selling Shareholder shall be bound by the applicable provisions of such option.
(b) . In the event of a Prohibited Transfer, each Eligible Investor Holder shall have the right to sell to such Selling Shareholder the Founder the type and number of shares of Series A Preferred Stock (or Common Stock issued or issuable upon conversion thereof) equal to the number of shares that such Eligible Investor each Holder would have been entitled to transfer to the third-party transferee(s) under Section 5.2 6 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder such Selling Shareholder shall be equal to the price per share paid by the third-party transferee(s) to the Founder such Selling Shareholder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Selling Shareholder shall also reimburse each Eligible Investor Holder for any and all fees and expense, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible InvestorHolder’s rights under Section 55 or 6 hereof.
(ii) Within thirty ninety (3090) days after the later of the dates on which the Eligible Investor Holder (A) received notice of the Prohibited Transfer or (B) otherwise became aware of the Prohibited Transfer, each Eligible Investor Holder shall, if exercising the option created hereby, deliver to the Founder such Selling Shareholder the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder Such Selling Shareholder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor a Holder, pursuant to this Section 56(g)(iii), pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(i)Section 6(g)(i) hereof, in cash or by other means acceptable to the Eligible InvestorHolder.
(civ) Notwithstanding the foregoing, any attempt by a Founder the Selling Shareholder to transfer Founders Offered Shares in violation of Section 5 or 6 hereof shall be void and the Company hereby agrees it will not to effect such a transfer nor will it and not to treat any alleged transferee(s) as the holder of such shares, shares without the written consent of two-thirds (2/3) Holders holding a majority in interest of the Eligible Investorsthen outstanding Series A Preferred Stock.
Appears in 2 contracts
Samples: Investors’ Rights Agreement (DBS Nominees (Private) LTD), Investors’ Rights Agreement (JINHAO MOTOR Co)
Prohibited Transfers. (a) In the event any Founder Transferring Stockholder should sell any Founders Shares Equity Securities in contravention of the co-sale rights of the Investors under Section 5 3.2 (a “Prohibited Transfer”), the InvestorsRemaining Major Stockholders, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder such Transferring Stockholder shall be bound by the applicable provisions of such option.
(b) Notwithstanding the foregoing, any attempt by any Major Stockholder to transfer Equity Securities in violation of Section 3 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder of such shares without the written consent of the Remaining Major Stockholders.
(c) In the event of that the Company fails to comply with Section 3.5(b) hereof, and as such a Prohibited TransferTransfer is consummated, each Eligible Investor the Remaining Major Stockholders shall have the right to sell to the Founder Transferring Stockholder the type and number of shares of Common Stock Equity Securities equal to the number of shares that such Eligible Investor the Remaining Major Stockholders would have been entitled to transfer to the third-party transferee(s) under Section 5.2 3.2 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder Transferring Stockholder shall be equal to the price per share paid by the third-party transferee(s) to the Founder Transferring Stockholder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash Transfer (on an as-converted basis, if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investorapplicable). The Founder Transferring Stockholder shall also reimburse each Eligible Investor the Remaining Major Stockholders for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s Remaining Major Stockholders’ rights under Section 53.
(ii) Within thirty ninety (3090) days after the later of the dates on which the Eligible Investor Remaining Major Stockholders (A) received notice of the Prohibited Transfer or (B) otherwise became become aware of the Prohibited Transfer, each Eligible Investor the Remaining Major Stockholders shall, if exercising the option created hereby, deliver to the Founder Transferring Stockholder the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder Transferring Stockholder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor the Remaining Major Stockholders, pursuant to this Section 53.5, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(i3.5(b), in cash cash, certified check or by other means acceptable wire transfer of immediately available funds to an account designated by the Eligible InvestorRemaining Major Stockholders.
(c) Notwithstanding the foregoing, any attempt by a Founder to transfer Founders Shares in violation of Section 5 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder of such shares, without the written consent of two-thirds (2/3) in interest of the Eligible Investors.
Appears in 2 contracts
Samples: Right of First Refusal and Co Sale Agreement (C MEDIA LTD), Right of First Refusal and Co Sale Agreement (McMahon Shane)
Prohibited Transfers. (a) Except as otherwise provided in this Agreement, each Holder will not sell, assign, transfer, pledge, hypothecate or otherwise encumber or dispose of in any way, all or any part of or any interest in the Equity Securities. Any sale, assignment, transfer, pledge, hypothecation or other encumbrance or disposition of Equity Securities not made in conformance with this Agreement shall be null and void, shall not be recorded on the books of the Company and shall not be recognized by the Company.
(b) In the event any Founder that a Majority Ordinary Shareholder should sell any Founders Shares Equity Securities in contravention of the co-sale rights of the Investors Co-Sale Holders under Section 5 3.3 (a “Prohibited Transfer”), the InvestorsCo-Sale Holders, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided belowbelow under subsection (c), and all the Founder Majority Ordinary Shareholders shall be bound by the applicable provisions of such option.
(bc) In the event of a Prohibited Transfer, each Eligible Investor Co-Sale Holder shall have the right to sell to the Founder Majority Ordinary Shareholders the type and number of shares of Common Stock Equity Securities equal to the number of shares that such Eligible Investor each Co-Sale Holder would have been entitled to transfer to the third-party transferee(s) under Section 5.2 3.3 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder Majority Ordinary Shareholders shall be equal to the price per share paid by the third-party transferee(s) to the Founder Majority Ordinary Shareholders in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Majority Ordinary Shareholders shall also reimburse each Eligible Investor Co-Sale Holder for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible InvestorCo-Sale Holder’s rights under Section 53.3.
(ii) Within thirty ninety (3090) days after the later of the dates date on which the Eligible Investor Co-Sale Holder (A) received receives notice of the Prohibited Transfer or (B) otherwise became becomes aware of the Prohibited Transfer, each Eligible Investor Co-Sale Holder shall, if exercising the option created hereby, deliver to the Founder Majority Ordinary Shareholders the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder Majority Ordinary Shareholders shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor a Co-Sale Holder pursuant to this Section 53.6, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(i3.6(c)(i), in cash or by other means acceptable to the Eligible InvestorHolder.
(c) Notwithstanding the foregoing, any attempt by a Founder to transfer Founders Shares in violation of Section 5 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder of such shares, without the written consent of two-thirds (2/3) in interest of the Eligible Investors.
Appears in 2 contracts
Samples: Investors’ Rights Agreement (Gushan Environmental Energy LTD), Subscription Agreement (Gushan Environmental Energy LTD)
Prohibited Transfers. (a) In the event If a Founder sells any Founder should sell any Founders Co-Sale Shares in contravention of the co-sale rights of the Investors under this Section 5 6 (a “Prohibited Transfer”"PROHIBITED TRANSFER"), the Investorseach Investor and Non-Transferring Founder, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, to sell to the Founder such Investors' Pro Rata Share and the Founder shall be bound by obligated to purchase such Investor's Pro Rata Share at the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Investor shall have the right to sell to the Founder the type and number of shares of Common Stock equal to the number of shares that such Eligible Investor would have been entitled to transfer to the third-party transferee(s) under Section 5.2 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder shall be equal to the price per share paid by the third-party transferee(s) Acquiror to the Founder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder shall also reimburse each Eligible Investor for any and all reasonable fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s 's rights under Section 5.
(ii) 6. Within thirty (30) 90 days after the later of the dates on which the Eligible Investor Investors and Non-Transferring Founders (A) received notice of the Prohibited Transfer or (B) otherwise became aware of the Prohibited Transfer, each Eligible Investor and Non-Transferring Founder shall, if exercising the option created hereby, deliver to the Founder the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) . The Founder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor or a Non-Transferring Founder, pursuant to this Section 56.6, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(i), in cash or by other means acceptable to the Eligible Investor.
(c) Investor or Non-Transferring Founder. Notwithstanding the foregoing, any attempt by a Founder to transfer Founders Co-Sale Shares in violation of Section 5 6 hereof shall be void voidable and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) transferee as the holder of such shares, shares without the written consent of two-thirds (2/3) in interest the holders of a majority of the Eligible InvestorsShares.
Appears in 2 contracts
Samples: Investors' Rights Agreement (Cosine Communications Inc), Investors' Rights Agreement (Cosine Communications Inc)
Prohibited Transfers. (a) In the event any Founder a Selling Shareholder should sell any Founders Restricted Shares in contravention of the co-sale transfer restrictions in this Section 4 or such Selling Shareholder fails to procure that its transferee (whether a third party transferee, an affiliate or otherwise) agree in writing to be bound by and comply with the rights and obligations of the Investors such Selling Shareholder under this Agreement, including, without limitation, all provisions of this Section 5 4 (each, a “Prohibited Transfer”), the InvestorsPreferred Holders, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, below and the Founder such Selling Shareholder shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Investor Preferred Holder shall have the right to sell to the Founder such Selling Shareholder the type and number of shares of Common Stock Shares, Conversion Shares or Preferred Shares equal to the number of shares that such Eligible Investor each Preferred Holder would have been entitled to transfer to the third-party transferee(s) under Section 5.2 4.3(g) hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof (assuming the Company had not exercised its right of first refusal and no Preferred Holder had elected to become Purchasing Holders). Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder such Selling Shareholder shall be equal to the price per share paid by the third-party transferee(s) to the Founder such Selling Shareholder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Selling Shareholder shall also reimburse each Eligible Investor Preferred Holder for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible InvestorPreferred Holder’s rights under this Section 54.
(ii) Within thirty (30) days after the later of the dates on which the Eligible Investor Preferred Holder (A) received notice of the Prohibited Transfer or (B) otherwise became aware of the Prohibited Transfer, each Eligible Investor Preferred Holder shall, if exercising the option created hereby, deliver to the Founder such Selling Shareholder a duly executed instrument of transfer and the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder Selling Shareholder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor a Preferred Holder, pursuant to this Section 54.6, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(iSection 4.6(b)(i), in cash or by other means acceptable to the Eligible InvestorPreferred Holder.
(civ) Notwithstanding the foregoing, any attempt by a Founder such Selling Shareholder to transfer Founders Restricted Shares in violation of this Section 5 4 hereof shall be null and void and the Company agrees it will not effect such a transfer Transfer nor will it treat any alleged transferee(s) as the holder of such shares, shares without the written consent of two-thirds (2/3) in interest the holders of a majority of the Eligible Investorsthen outstanding Series A Shares, the holders of a majority of the then outstanding Series B Shares, the holders of a majority of the then outstanding Series C Shares, the holders of a majority of the then outstanding Series D Shares, and the holders of at least 75% of the then outstanding Series E Shares, each voting together as a separate class.
Appears in 2 contracts
Samples: Shareholder Agreement (Xunlei LTD), Shareholder Agreements (Xunlei LTD)
Prohibited Transfers. (a1) In the event any Founder a Transferor should sell any Founders Shares Equity Securities in contravention of the cotag-sale along rights of the Investors Investor Stockholders under Section 5 3.3.7 (a “Prohibited Transfer”), the InvestorsInvestor Stockholders, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided belowbelow under Section 3.3.9(2), and the Founder such Transferor shall be bound by the applicable provisions of such option.
(b2) In the event of a Prohibited Transfer, each Eligible Investor Stockholder shall have the right to sell to the Founder Transferor making such Prohibited Transfer the type and number of shares of Common Stock Equity Securities equal to the number of shares that such Eligible each Investor Stockholder would have been entitled to transfer to the third-party transferee(s) Proposed Transferee under Section 5.2 3.3.7 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i3) The price per share at which the shares are to be sold to the Founder Transferor shall be equal to the price per share paid by the third-party transferee(s) Proposed Transferee to the Founder Transferor in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Transferor shall also reimburse each Eligible Investor Stockholder for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible InvestorInvestor Stockholder’s rights under Section 53.3.7.
(ii4) Within thirty ninety (3090) days after the later of (X) the dates date on which the Eligible Investor (A) received Stockholder receives notice of the Prohibited Transfer or and (BY) the date on which the Investor Stockholder otherwise became becomes aware of the Prohibited Transfer, each Eligible Investor Stockholder shall, if exercising the option created hereby, deliver to the Founder Transferor the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii5) The Founder Transferor shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor Stockholder pursuant to this Section 53.3.9, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(i), expenses reimbursable under Section 3.3.9(2)(A) in cash or by other means acceptable to the Eligible InvestorInvestor Stockholder.
(c) Notwithstanding the foregoing, any attempt by a Founder to transfer Founders Shares in violation of Section 5 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder of such shares, without the written consent of two-thirds (2/3) in interest of the Eligible Investors.
Appears in 2 contracts
Samples: Stockholders' Agreement (Vapotherm Inc), Stockholders Agreement (Vapotherm Inc)
Prohibited Transfers. (a) In the event that a Purchaser or Covalent Partners should Transfer any Founder should sell any Founders Shares Co-Sale Stock in contravention of the co-sale rights (the "Violating Party") under this Agreement (a "Prohibited Transfer"), each holder of the Investors under Section 5 (a “Prohibited Transfer”), the Investorsco-sale rights, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder Violating Party shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Investor holder of the co-sale rights shall have the right to sell to the Founder Violating Party the type and number of shares of Common Stock equal to the number of shares that such Eligible Investor the holder of the co-sale rights would have been entitled to transfer to the third-party transferee(s) purchaser under Section 5.2 3(b) or Section 5(b), as applicable, hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder Violating Party shall be equal to the price per share paid by the third-party transferee(s) purchaser to the Founder Violating Party in the such Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Violating Party shall also reimburse each Eligible Investor holder of the co-sale rights for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s such holder's rights under Section 3 and Section 5.
(ii) Within thirty ninety (3090) days after the later of the dates date on which the Eligible Investor (A) holder of the co-sale rights received notice of the Prohibited Transfer or (B) otherwise became aware of the Prohibited Transfer, each Eligible Investor such holder of the co-sale rights shall, if exercising the option created hereby, deliver to the Founder Violating Party the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder Violating Party shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor the holder of the co-sale rights, pursuant to this Section 56(b), pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(iSection 8(b)(i), in cash or by other means acceptable to the Eligible InvestorPurchaser.
(c) Notwithstanding the foregoing, any attempt by a Founder to transfer Founders Shares in violation of Section 5 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder of such shares, without the written consent of two-thirds (2/3) in interest of the Eligible Investors.
Appears in 2 contracts
Samples: Stockholder Agreement (Covalent Partners LLC), Stockholder Agreement (Covalent Partners LLC)
Prohibited Transfers. (a) In the event a Common Stockholder should transfer any Founder should sell any Founders Shares in contravention of the right of first refusal or co-sale rights of the Company and the Investors under Section 5 1 and Section 2 (a “Prohibited Transfer”), the Investors, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, below and the Founder such Common Stockholder (and its transferee) shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Investor shall have the right to sell to the Founder such Common Stockholder the type and number of shares of Common Stock or Preferred Stock equal to the number of shares that such Eligible each Investor would have been entitled to transfer to the third-party transferee(s) under Section 5.2 2(a) hereof (assuming if necessary such Investor were a Major Investor) had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof (assuming the Company had not exercised its right of first refusal and no Investor had elected to exercise its right of first refusal). Such sale shall be made on the following terms and conditions:
(i1) The price per share at which the shares are to be sold to the Founder such Common Stockholder shall be equal to the price per share paid by the third-party transferee(s) to the Founder such Common Stockholder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Common Stockholder shall also reimburse each Eligible Investor for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s rights under Section 51 and Section 2.
(ii2) Within thirty (30) 90 days after the later of the dates on which the Eligible Investor (Ai) received written notice of the Prohibited Transfer or (Bii) otherwise became aware of the Prohibited Transfer, each Eligible Investor shall, if exercising the option created hereby, deliver to the Founder Company the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii3) The Founder shall, Common Stockholder shall upon the Company’s receipt of the certificate or certificates for the shares to be sold by an Eligible Investor Investor, pursuant to this Section 54, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(iSection 4(b)(1), in cash or by other means acceptable to the Eligible Investor.
(c4) Notwithstanding the foregoing, any attempt by a Founder such Common Stockholder to transfer Founders Shares in violation of Section 5 hereof this Agreement shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder of such shares, without the written consent of two-thirds shares unless and until such (2/3i) transfer is made in interest compliance with all of the Eligible Investorsterms of this Agreement and all applicable federal and state securities laws and (ii) before such transfer, the transferee or transferees sign a counterpart to this Agreement pursuant to which it or they agree to be bound by the terms of this Agreement.
Appears in 2 contracts
Samples: License Agreement (Orexigen Therapeutics, Inc.), License Agreement (Orexigen Therapeutics, Inc.)
Prohibited Transfers. (a) In the event that I-Pulse, the Ivanhoe Parties or any Founder should sell of their respective Affiliates, as the Seller, Transfers any Founders Shares Corporation Securities owned beneficially or of record by it in contravention of the co-sale rights of the Investors under Investor Parties set forth in Section 5 2.1 (a “Prohibited Transfer”), the InvestorsInvestor Parties, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder such Seller shall be bound by (or, if such Seller is not I-Pulse or an Ivanhoe Party, I-Pulse or the applicable Ivanhoe Party shall cause such Seller to comply with) the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible the Investor Parties shall have the right to sell Transfer to such Seller any or all of the Founder Corporation Securities held by the type and number of shares of Common Stock equal to the number of shares that such Eligible Investor would have been entitled to transfer to the third-party transferee(s) under Section 5.2 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofParties. Such sale Transfer shall be made on the following terms and conditions:
: (i) The the price per share at which the shares are to be sold Transferred to the Founder such Seller shall be equal to the price per share paid by the third-party transferee(s) to the Founder Seller in the such Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid ; (Aii) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Seller shall also reimburse each Eligible the Investor Parties for any and all fees and expenseexpenses, including reasonable legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s Investor Parties’ rights under Section 5.
hereunder (iiincluding pursuing all available legal remedies); and (iii) Within thirty within ninety (3090) days after the later of the dates date on which the Eligible Investor (A) Parties received notice of the such Prohibited Transfer or (B) otherwise became aware of the such Prohibited Transfer, each Eligible the Investor Parties shall, if exercising the option created established hereby, deliver to the Founder the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor pursuant to this Section 5, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(iSection 2.1(d), in cash or by other means acceptable to the Eligible InvestorInvestor Parties, deliver to such Seller one or more certificates representing such Corporation Securities duly endorsed for transfer or accompanied by duly completed stock powers.
(c) Notwithstanding the foregoing, any attempt by a Founder to transfer Founders Shares in violation of Section 5 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder of such shares, without the written consent of two-thirds (2/3) in interest of the Eligible Investors.
Appears in 2 contracts
Samples: Stockholders Agreement (Ivanhoe Electric Inc.), Stockholders Agreement (Ivanhoe Electric Inc.)
Prohibited Transfers. (a) No Holder may sell, assign, transfer, give, pledge, hypothecate, mortgage, encumber or dispose of all or any of his Restricted Shares except to a Permitted Transferee or otherwise as expressly permitted by this Agreement.
(b) In the event any Founder should sell Proposed Transferor sells any Founders Restricted Shares in contravention of the co-sale rights of the Investors Holders under Section 5 this Agreement (a “Prohibited Transfer”"PROHIBITED TRANSFER"), the InvestorsHolders, in addition to such other remedies as may be available at law, in equity equity, under the Company's Charter or hereunder, shall will have the put option provided below, and the Founder shall such Proposed Transferor will be bound by the applicable provisions of such option.
(bc) In the event of a Prohibited Transfer, each Eligible Investor shall Holder will have the right to sell to the Founder Proposed Transferor, and the type and Proposed Transferor will be obligated to purchase from such Holder, the number of shares of Common Stock equal to the number of shares that such Eligible Investor Holder would have been entitled to transfer to the third-party transferee(s) purchaser in the Prohibited Transfer under Section 5.2 hereof 3 had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall will be made on the following terms and conditions:
(i) The the price per share at which the shares are to be sold to the Founder shall Proposed Transferor will be equal to the price per share paid by the third-party transferee(s) purchaser to the Founder Proposed Transferor in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder shall also reimburse each Eligible Investor for any and all fees and expense, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s rights under Section 5.;
(ii) Within thirty within ninety (3090) days after the later of the dates on which the Eligible Investor a Holder (A) received receives notice of the Prohibited Transfer or (B) otherwise became becomes aware of the Prohibited Transfer, each Eligible Investor shallsuch Holder will notify the other Holders, if exercising the put option created hereby, and deliver to the Founder Proposed Transferor the certificate or certificates representing that number of shares of Common Stock to be sold, or, at the Holder's option, a certificate or certificates representing that number of shares of Preferred Stock that is at such time convertible into the number of shares of Common Stock to be sold, each certificate to be properly endorsed for transfer.; and
(iii) The Founder shallthe Proposed Transferor will, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor a Holder pursuant to this Section 55(c)(iii), pay the aggregate purchase price therefor and the amount of reimbursable fees and expensestherefor, as specified in subparagraph 5.5(b)(iSection 5(c)(i), in cash or by other means acceptable to the Eligible InvestorHolder. The Proposed Transferor must also reimburse the Holder for any and all reasonable fees and expenses, including reasonable legal fees and expenses, incurred pursuant to the exercise of such Holder's rights hereunder.
(cd) Notwithstanding The Company will not, without the foregoingapproval of Holders holding a majority of the number of outstanding Shares, calculated on the basis of the number of shares of Common Stock constituting the Shares on a fully diluted basis then held by all Holders (other than the Proposed Transferor): (i) permit any attempt by a Founder to transfer Founders on its books of any Shares which have been sold in violation of Section 5 hereof shall be void any of the provisions set forth in this Agreement or (ii) treat as the owner of such Shares, or accord the right to vote as an owner or pay dividends to any transferee to whom such Shares have been sold in violation of any of the provisions set forth in this Agreement.
(e) No Holder may transfer any Restricted Shares until the earlier of March 31, 2006 and the Company agrees it will not effect Liquidity Date, other than to a Permitted Transferee or in accordance with Section 2 and Section 3 of this Agreement or unless such transfer is pursuant to a Qualifying Sale.
(f) At no time shall a Holder transfer nor will it treat any alleged transferee(s) as the holder of such shares, without the written consent of two-thirds (2/3) in interest Shares to a direct competitor of the Eligible InvestorsCompany, as reasonably determined by the Company's Board of Directors, except pursuant to a Qualifying Sale.
Appears in 2 contracts
Samples: Stockholders Agreement (Mercantile Equity Partners Iii L P), Stockholders Agreement (Vsource Inc)
Prohibited Transfers. (a) In the event any Founder a Selling Shareholder should sell any Founders Restricted Shares in contravention of the co-sale transfer restrictions in this Section 4 or such Selling Shareholder fails to procure that its transferee (whether a third party transferee, an affiliate or otherwise) agree in writing to be bound by and comply with the rights and obligations of the Investors such Selling Shareholder under this Agreement, including, without limitation, all provisions of this Section 5 4 (each, a “Prohibited Transfer”), the InvestorsPreferred Holders, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, below and the Founder such Selling Shareholder shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Investor Preferred Holder shall have the right to sell to the Founder such Selling Shareholder the type and number of shares of Common Stock Shares, Conversion Shares or Preferred Shares equal to the number of shares that such Eligible Investor each Preferred Holder would have been entitled to transfer to the third-party transferee(s) under Section 5.2 4.3(g) hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof (assuming the Company had not exercised its right of first refusal and no Preferred Holder had elected to become Purchasing Holders). Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder such Selling Shareholder shall be equal to the price per share paid by the third-party transferee(s) to the Founder such Selling Shareholder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Selling Shareholder shall also reimburse each Eligible Investor Preferred Holder for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible InvestorPreferred Holder’s rights under this Section 54.
(ii) Within thirty (30) days after the later of the dates on which the Eligible Investor Preferred Holder (A) received notice of the Prohibited Transfer or (B) otherwise became aware of the Prohibited Transfer, each Eligible Investor Preferred Holder shall, if exercising the option created hereby, deliver to the Founder such Selling Shareholder a duly executed instrument of transfer and the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder Selling Shareholder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor a Preferred Holder, pursuant to this Section 54.6, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(iSection 4.6(b)(i), in cash or by other means acceptable to the Eligible InvestorPreferred Holder.
(civ) Notwithstanding the foregoing, any attempt by a Founder such Selling Shareholder to transfer Founders Restricted Shares in violation of this Section 5 4 hereof shall be null and void and the Company agrees it will not effect such a transfer Transfer nor will it treat any alleged transferee(s) as the holder of such shares, shares without the written consent of two-thirds (2/3) in interest the holders of a majority of the Eligible Investorsthen outstanding Series A Shares, the holders of a majority of the then outstanding Series B Shares and the holders of a majority of the then outstanding Series C Shares, each voting together as a separate class.
Appears in 2 contracts
Samples: Shareholder Agreement, Shareholder Agreement (Xunlei LTD)
Prohibited Transfers. (a) In the event any Founder a Selling Shareholder should sell any Founders Restricted Shares in contravention of the co-sale transfer restrictions in this Section 4 or such Selling Shareholder fails to procure that its transferee (whether a third party transferee, an affiliate or otherwise) agree in writing to be bound by and comply with the rights and obligations of the Investors such Selling Shareholder under this Agreement, including, without limitation, all provisions of this Section 5 4 (each, a “Prohibited Transfer”), the InvestorsPreferred Holders, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, below and the Founder such Selling Shareholder shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Investor Preferred Holder shall have the right to sell to the Founder such Selling Shareholder the type and number of shares of Common Stock Shares, Conversion Shares or Preferred Shares equal to the number of shares that such Eligible Investor each Preferred Holder would have been entitled to transfer to the third-party transferee(s) under Section 5.2 4.3(g) hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof (assuming the Company had not exercised its right of first refusal and no Preferred Holder had elected to become Purchasing Holders). Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder such Selling Shareholder shall be equal to the price per share paid by the third-party transferee(s) to the Founder such Selling Shareholder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Selling Shareholder shall also reimburse each Eligible Investor Preferred Holder for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible InvestorPreferred Holder’s rights under this Section 54.
(ii) Within thirty (30) days after the later of the dates on which the Eligible Investor Preferred Holder (A) received notice of the Prohibited Transfer or (B) otherwise became aware of the Prohibited Transfer, each Eligible Investor Preferred Holder shall, if exercising the option created hereby, deliver to the Founder such Selling Shareholder a duly executed instrument of transfer and the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder Selling Shareholder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor a Preferred Holder, pursuant to this Section 54.6, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(iSection 4.6(b)(i), in cash or by other means acceptable to the Eligible InvestorPreferred Holder.
(civ) Notwithstanding the foregoing, any attempt by a Founder such Selling Shareholder to transfer Founders Restricted Shares in violation of this Section 5 4 hereof shall be null and void and the Company agrees it will not effect affect such a transfer Transfer nor will it treat any alleged transferee(s) as the holder of such shares, shares without the written consent of two-thirds (2/3) in interest the holders of a majority of the Eligible Investorsthen outstanding Series A Shares, the holders of a majority of the then outstanding Series B Shares, the holders of a majority of the then outstanding Series C Shares, the holders of a majority of the then outstanding Series D Shares, and the holders of at least 75% of the then outstanding Series E Shares, each voting together as a separate class.
Appears in 1 contract
Samples: Shareholder Agreement (Xunlei LTD)
Prohibited Transfers. (a) 4.1 In the event that a Founder should Transfer any Founder should sell any Founders Shares Stock in contravention of the co-sale rights of the Investors each Investor under Section 5 this Agreement (a “"Prohibited Transfer”"), the Investorseach Investor, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the such Founder shall be bound by the applicable provisions of such option.
(b) 4.2 In the event of a Prohibited Transfer, each Eligible Investor shall have the right to sell to the such Founder the type and number of shares of Common Stock Shares equal to the number of shares that such Eligible each Investor would have been entitled to transfer to the third-party transferee(s) purchaser under Section 5.2 2.3 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(ia) The price per share at which the shares are to be sold to the Founder shall be equal to the price per share paid by the third-party transferee(s) purchaser to the such Founder in the such Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder shall also reimburse each Eligible Investor for any and all fees and expenseexpenses, including reasonable legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s 's rights under Section 52.3.
(iib) Within thirty sixty (3060) days after the later of the dates date on which the Eligible an Investor (A) received notice of the Prohibited Transfer or (B) otherwise became aware of the Prohibited Transfer, each Eligible such Investor shall, if exercising the option created hereby, deliver to the Founder the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iiic) The Such Founder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor Investor, pursuant to this Section 54.2, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(iSection 4.2(a), in cash or by other means acceptable to the Eligible Investor.
(cd) Notwithstanding the foregoing, any attempt by a Founder to transfer Founders Shares Founder Stock in violation of Section 5 2.2 or 2.3 hereof shall be void voidable at the option of Investors holding at least 66 2/3% in interest of the Common Shares held by Investors and with regard to the co-sale right only, if the Investors do not elect to exercise the put option set forth in this Section 4. The Company agrees it will not effect such a any transfer of Founder Stock nor will it treat any alleged transferee(s) transferee as the holder of such shares, shares without (and it will instruct its transfer agent and registrar not to transfer any shares of Founder Stock without notification by the Company of its receipt of) the written consent of two-thirds (Investors holding at least 66 2/3) % in interest of the Eligible Common Shares held by Investors.
Appears in 1 contract
Prohibited Transfers. (a) In the event If a Founder sells any Founder should sell any Founders Co-Sale Shares in contravention of the co-sale rights of the Investors Section 7 under Section 5 this Agreement (a “"Prohibited Transfer”"), the Investorseach Investor, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Investor shall have the right option to sell to the Founder the type and number of shares of Common Stock equal to the number of shares that such Eligible Investor would have been entitled to transfer to the third-party transferee(s) under Section 5.2 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofInvestors' Participant's Pro Rata Share. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder shall be equal to the price per share paid by the third-party transferee(s) purchaser to the Founder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder shall also reimburse each Eligible Investor for any and all reasonable fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s 's rights under Section 57.
(ii) Within thirty (30) 90 days after the later of the dates on which the Eligible Investor (A) received notice of the Prohibited Transfer by the Founder or (B) otherwise became aware of the Prohibited Transfer, each Eligible Investor shall, if exercising the option created hereby, deliver to the Founder the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor a Investor, pursuant to this Section 5subparagraph, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(i7.3(b)(1), in cash or by other means acceptable to the Eligible Investor.
(civ) Notwithstanding the foregoing, any attempt by a Founder to transfer Founders Co-Sale Shares in violation of Section 5 7 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) transferee as the holder of such shares, shares without the written consent of two-thirds (2/3) a majority in interest of the Eligible Investors.
Appears in 1 contract
Samples: Investors' Rights Agreement (Advanced Uroscience Inc)
Prohibited Transfers. (a) Except as otherwise provided in this Agreement, each Ordinary Shareholder will not sell, assign, transfer, pledge, hypothecate or otherwise encumber or dispose of in any way, all or any part of any interest in the Equity Securities. Any sale, assignment, transfer, pledge, hypothecation or other encumbrance or disposition of Equity Securities not made in conformance with this Agreement shall be null and void, shall not be recorded on the books of the Company and shall not be recognized by the Company.
(b) In the event any Founder an Ordinary Shareholder should sell any Founders Shares Equity Securities in contravention of the co-sale rights of the Investors Holders under Section 5 2.2 (a “Prohibited Transfer”), the InvestorsHolders, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided belowbelow under subsection (c), and the Founder such Ordinary Shareholder shall be bound by the applicable provisions of such option.
(bc) In the event of a Prohibited Transfer, each Eligible Investor Holder shall have the right to sell to the Founder such Ordinary Shareholder the type and number of shares of Common Stock Equity Securities equal to the number of shares that such Eligible Investor each Holder would have been entitled to transfer to the third-party transferee(s) under Section 5.2 2.2 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder Ordinary Shareholder shall be equal to the price per share paid by the third-party transferee(s) to the Founder Ordinary Shareholder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Ordinary Shareholder shall also reimburse each Eligible Investor Holder for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible InvestorHolder’s rights under Section 52.2.
(ii) Within thirty sixty (3060) days after the later of the dates date on which the Eligible Investor Holder (A) received receives notice of the Prohibited Transfer or (B) otherwise became becomes aware of the Prohibited Transfer, each Eligible Investor Holder shall, if exercising the option created hereby, deliver to the Founder Ordinary Shareholder the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder Ordinary Shareholder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor a Holder pursuant to this Section 52.5, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(i2.5(c)(i), in cash or by other means acceptable to the Eligible InvestorHolder.
(c) Notwithstanding the foregoing, any attempt by a Founder to transfer Founders Shares in violation of Section 5 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder of such shares, without the written consent of two-thirds (2/3) in interest of the Eligible Investors.
Appears in 1 contract
Samples: First Refusal and Co Sale Agreement (Longtop Financial Technologies LTD)
Prohibited Transfers. (a) In the event any Founder a Transferring Holder should sell any Founders Shares Registrable Securities in contravention of the co-sale rights of the Investors Selling Holders under Section 5 3.2 (a “"Prohibited Transfer”"), the InvestorsSelling Holders, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder such Transferring Holder shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited TransferTransfer by such Transferring Holder, each Eligible Investor Selling Holder shall have the right to sell to the Founder such Transferring Holder the type and number of shares of Common Stock Registrable Securities equal to the number of shares that such Eligible Investor each Selling Holder would have been entitled to transfer to the third-party transferee(s) under Section 5.2 3.2 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder such Transferring Holder shall be equal to the price per share paid by the third-party transferee(s) to the Founder Transferring Holder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Transferring Holder shall also reimburse each Eligible Investor Selling Holder for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s Selling Holder's rights under Section 53.
(ii) Within thirty ninety (3090) days after the later of the dates on which the Eligible Investor Transferring Holder (A) received notice of the Prohibited Transfer or (B) otherwise became aware of the Prohibited Transfer, Transfers each Eligible Investor Selling Holder shall, if exercising the option created hereby, deliver to the Founder Transferring Holder the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder Transferring Holder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor sold, pursuant to this Section 53.5, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(i3.5(c)(i), in cash or by other means acceptable to the Eligible InvestorSelling Holder.
(civ) Notwithstanding the foregoing, any attempt by a Founder Transferring Holder to transfer Founders Shares Registrable Securities in violation of Section 5 3 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder of such shares, shares without the written consent of two-thirds (2/3) a majority in interest of the Eligible InvestorsHolders (on an as converted basis).
(c) Any transfer made in contravention of the rights of first refusal and co-sale under this Section 3 shall be null and void.
Appears in 1 contract
Prohibited Transfers. (a) In the event of any Founder should sell purported or actual sale or transfer (including, without limitation, the entering into of any Founders agreement, arrangement or understanding to sell) of Co-Sale Shares by any Principal Shareholder in contravention of the co-sale rights of the Investors under Section 5 LLCP hereunder (a “Prohibited Transfer”"PROHIBITED TRANSFER"), the InvestorsLLCP shall have, in addition to such all other rights, powers or remedies as may be available at law, in equity equity, under this Agreement or hereunderany other Investment Document or under Applicable Law, shall have the put option provided right to exercise the Prohibited Transfer Put (as such term is defined below), and the Founder such Principal Shareholder agrees that he or it shall be bound by the applicable provisions hereof, to require the party that entered into such sale or transfer to purchase a number of such optionshares of equity securities of the Company equal to the number of shares of equity securities that LLCP would have been entitled to sell under SECTION 3.4, had the Prohibited Transfer been effective in accordance and in compliance with the terms of SECTION 3.1 through SECTION 3.6.
(b) In the event of any Prohibited Transfer by a Principal Shareholder:
(i) The Company shall, upon the request of LLCP, instruct the Company's transfer agent not to enter such Prohibited Transfer, each Eligible Investor shall have Transfer on the stock ledger or other similar records of the Company; and
(ii) LLCP may exercise a right (the "PROHIBITED TRANSFER PUT") to sell require such Principal Shareholder to the Founder the type and purchase a number of shares of Common Stock equity securities of the Company equal to the number of shares that such Eligible Investor LLCP would have been entitled to transfer sell to the third-party transferee(s) purchaser under Section 5.2 hereof this SECTION 3 had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(iA) The price per share at which the shares are to be sold to the Founder such Principal Shareholder shall be equal to the price per share paid by the third-party transferee(s) purchaser to the Founder such Principal Shareholder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Principal Shareholder shall also reimburse each Eligible Investor LLCP for any and all fees and expenseexpenses, including legal fees attorneys, accountants and other expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s LLCP's rights under Section 5.SECTION 3;
(iiB) Within thirty (30) days after the later of the dates on which the Eligible Investor LLCP (Ax) received notice of the Prohibited Transfer or (By) otherwise became aware of the Prohibited Transfer, each Eligible Investor LLCP shall, if exercising the option created herebyProhibited Transfer Put, deliver to the Founder such Principal Shareholder the certificate or certificates representing the shares to be sold, each certificate to be properly endorsed for transfer.;
(iiiC) The Founder Such Principal Shareholder shall, immediately upon receipt of the certificate or certificates for (but no later than one (1) day after receipt of such certificate or certificates) representing the shares to be sold by an Eligible Investor pursuant to this Section 5LLCP, pay to LLCP the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(iSECTION 3.9(b)(ii)(a), by wire transfer in cash or by other means acceptable to the Eligible Investor.immediately available funds; and
(cD) Notwithstanding the foregoing, any attempt by a Founder to transfer Founders Shares in violation of Section 5 hereof shall be void and the Company agrees that it will not effect such a transfer nor will it treat any alleged transferee(s) transferee as the holder of such shares, shares without the prior written consent of two-thirds (2/3) in interest of the Eligible InvestorsLLCP.
Appears in 1 contract
Samples: Investor Rights Agreement (Levine Leichtman Capital Partners Ii Lp)
Prohibited Transfers. (a) In the event any Founder Selling Member should sell any Founders Shares Interests in contravention of the co-sale rights of the Investors other Members under this Section 5 9.3 (a “Prohibited Transfer”), the InvestorsMembers, as the case may be, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder such Selling Member shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Investor Member shall have the right to sell to the Founder such Selling Member the type and number of shares of Common Stock the Interests equal to the number of shares that such Eligible Investor Interests each Member would have been entitled to transfer to the third-party transferee(s) under Section 5.2 9.3 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share Interest at which the shares Interests are to be sold to the Founder such Selling Member shall be equal to the price per share Interest paid by the third-party transferee(s) to the Founder such Selling Member in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Selling Member shall also reimburse each Eligible Investor Member for any and all fees and expense, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible InvestorMember’s rights under Section 59.
(ii) Within thirty (30) 45 days after the later of the dates on which the Eligible Investor Member (A) received notice of the Prohibited Transfer or (B) otherwise became become aware of the Prohibited Transfer, each Eligible Investor Member shall, if exercising the option created hereby, deliver to the Founder such Selling Member the certificate or certificates representing shares Interests to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder Such Selling Member shall, upon receipt of the certificate or certificates for the shares Interests to be sold by an Eligible Investor a Member, pursuant to this Section 59.5, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(iSection [4.4(e)], in cash or by other means acceptable to the Eligible InvestorMember.
(civ) Notwithstanding the foregoing, any attempt by a Founder Selling Member to transfer Founders Shares the Interests in violation of Section 5 hereof this Agreement shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder of such shares, Interests without the written consent of two-thirds (2/3) a majority in interest of the Eligible InvestorsMembers.
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Prohibited Transfers. (a) In the event any Founder Co-Sale Offeror should sell transfer any Founders Shares Securities in contravention of the co-sale rights of the Investors under Section 5 Other Stockholders as set forth in this Article V (a “"Prohibited Transfer”"), to the Investorsextent such transfer is valid and recorded on the books of and recognized by the Company, the Other Stockholders, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder such Co-Sale Offeror shall be bound by the applicable provisions of such option. The Other Stockholders may transfer any of their respective shares of Series A Preferred Stock at any time without limitation, so long as the transfer is in compliance with applicable securities laws and, to the extent co-sale rights are to be assigned as part of such transfer, with the provisions of Article IV hereof.
(b) In the event of a Prohibited Transfer, each Eligible Investor Other Stockholder shall have the right to sell to the Founder Co-Sale Offeree the type and number of shares of Common Stock equal to the number of shares that such Eligible Investor each Other Stockholder would have been entitled to transfer to the thirdCo-party transferee(s) under Section 5.2 hereof Sale Offeree above had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder Co-Sale Offeror shall be equal to the price per share paid by the thirdCo-party transferee(s) Sale Offeree to the Founder Co-Sale Offeror in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder shall also reimburse each Eligible Investor for any and all fees and expense, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s rights under Section 5.
(ii) Within thirty sixty (3060) days after the later of the dates on which the Eligible Investor Other Stockholder (A) received notice of the Prohibited Transfer or (B) otherwise became aware of the Prohibited Transfer, each Eligible Investor Other Stockholder shall, if exercising the option created hereby, deliver to the Founder Co-Sale Offeror the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder Co-Sale Offeror shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor pursuant to this Section 5, Other Stockholder pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(i), in cash or by other means acceptable to the Eligible InvestorOther Stockholder.
(c) Notwithstanding the foregoing, any attempt by a Founder to transfer Founders Shares in violation of Section 5 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder of such shares, without the written consent of two-thirds (2/3) in interest of the Eligible Investors.
Appears in 1 contract
Prohibited Transfers. (a) 5.1 In the event any a Selling Founder should sell any Founders Shares Stock in contravention of the co-sale rights of the Investors and the other Founders under Section 5 this Agreement (a “"Prohibited Transfer”"), the Investorseach Investor and other Founder, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Selling Founder shall be bound by the applicable provisions of such option.
(b) 5.2 In the event of a Prohibited Transfer, each Eligible Investor and other Founder shall have the right to sell to the Selling Founder the type and number of shares of Common Stock equal to the number of shares that such Eligible Investor or other Founders, as the case may be, would have been entitled to transfer to the third-party transferee(s) purchaser under Section 5.2 paragraph 3.3 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(ia) The price per share at which the shares are to be sold to the Selling Founder shall be equal to the price per share paid by the third-party transferee(s) purchaser to the Selling Founder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Selling Founder shall also reimburse each Eligible Investor and other Founder for any and all fees and expense, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s co-sale rights under Section 53.
(iib) Within thirty ninety (3090) days after the later earlier of the dates on which the Eligible Investor or other Founder (A) received notice of the Prohibited Transfer or (B) otherwise became become aware of the Prohibited Transfer, each Eligible Investor and other Founder shall, if exercising the option created hereby, deliver to the Selling Founder the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iiic) The Selling Founder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible any Investor or other Founder, pursuant to this Section 5paragraph 5.2, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(i5.2(a), in cash or by other means acceptable to the Eligible InvestorInvestor or other Founder.
(cd) Notwithstanding the foregoing, any attempt by a Selling Founder to transfer Founders Shares Stock in violation of Section 5 3 hereof shall be void and the Company Acusphere agrees it will not effect such a transfer nor will it treat any alleged transferee(s) transferee as the holder of such shares, shares without the written consent of two-thirds (2/3) in interest of each Investor and other Founder; provided, however, that if an Investor or other Founder elects to exercise the Eligible Investorsput option as discussed above, then such Investor or other Founder shall be deemed to have provided its written consent permitting Acusphere to transfer the Stock on its records.
Appears in 1 contract
Prohibited Transfers. (a) In the event any a Selling Founder should sell any Founders Shares Stock in contravention of the co-sale rights of the Investors under Section 5 4 hereof (a “"Prohibited Transfer”"), the Investors, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the such Selling Founder shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Investor shall have the right to sell to the such Selling Founder the type and number of shares of Preferred Stock (or Common Stock issued or issuable upon conversion thereof) equal to the number of shares that such Eligible each Investor would have been entitled to transfer to the third-third party transferee(s) under Section 5.2 4 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the such Selling Founder shall be equal to the price per share paid by the third-at which such shares would have been sold to third party transferee(s) pursuant to the Founder in Section 4 hereof had the Prohibited TransferTransfer been effected pursuant to and in compliance with the terms hereof. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Selling Founder shall also reimburse each Eligible Investor for any and all fees and expense, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s 's rights under Section 53 or 4 hereof.
(ii) Within thirty ninety (3090) days after the later of the dates on which the Eligible Investor (A) received notice of the Prohibited Transfer or (B) otherwise became aware of the Prohibited Transfer, each Eligible Investor shall, if exercising the option created hereby, deliver to the such Selling Founder the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Such Selling Founder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor Investor, pursuant to this Section 57, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(i)Section 7(b)(i) hereof, in cash or by other means acceptable to the Eligible Investor.
(civ) Notwithstanding the foregoing, any attempt by a the Selling Founder to transfer Founders Shares Stock in violation of Section 5 3 or 4 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder of such shares, shares without the written consent of two-thirds (2/3) a majority in interest of the Eligible Investors.
Appears in 1 contract
Samples: Right of First Refusal and Co Sale Agreement (Light Sciences Oncology Inc)
Prohibited Transfers. (a) In the event any Founder that a Stockholder should sell any Founders Shares Co-Sale Stock in contravention of the co-sale rights of the Investors Holders under Section 5 this Agreement (a “Prohibited Transfer”"PROHIBITED TRANSFER"), the Investorseach Holder, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder such Stockholder shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Investor Holder shall have the right to sell to the Founder such Stockholder the type and number of shares of Common Investor Stock (or warrant exercisable for Investor Stock) equal to the number of shares that such Eligible Investor Holder would have been entitled to transfer to the third-party transferee(s) purchaser under Section 5.2 2(c) hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder Stockholder by a Holder pursuant to this Section 4 shall be equal to the price per share paid by the third-party transferee(s) purchaser to such Stockholder in such Prohibited Transfer; provided that the purchase price of any warrant shall be reduced by the exercise thereof with respect to the Founder underlying shares of Investor Stock being purchased in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investortransaction. The Founder Stockholder also shall also reimburse each Eligible Investor Holder for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s Holder's rights under Section 52.
(ii) Within thirty ninety (3090) days after the later of the dates date on which the Eligible Investor (A) a Holder received notice of the Prohibited Transfer or (B) otherwise became aware of the Prohibited Transfer, each Eligible Investor such Holder shall, if exercising the option created hereby, deliver to the Founder Stockholder the certificate or certificates representing shares or warrants to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder Such Stockholder shall, upon receipt of the certificate or certificates for the shares or warrants to be sold by an Eligible Investor a Holder, pursuant to this Section 54(b), pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(iSection 4(b)(i), in cash or by other means acceptable to the Eligible InvestorHolder.
(civ) Notwithstanding the foregoing, any attempt by a Founder Stockholder to transfer Founders Shares Co-Sale Stock in violation of Section 5 2 hereof shall be void voidable at the option of 1818 Fund, CapitalSource or Investors holding a majority of the shares of Investor Stock (on a fully-diluted basis) held by all Investors if none of the Holders elect to exercise the put option set forth in this Section 4, and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) transferee as the holder of such shares, shares without the written consent of two-thirds (2/3) in interest 1818 Fund, CapitalSource and Investors holding a majority of the Eligible shares of Investor Stock (on a fully-diluted basis) held by all Investors.
Appears in 1 contract
Samples: Co Sale Agreement (1818 Fund Lp Brown Brothers Harriman Co Long T Michael Et Al)
Prohibited Transfers. (a) In the event any Founder a Significant Shareholder should sell any Founders Shares Stock in contravention of the co-sale rights of the Investors TOI under Section 5 this Agreement (a “"Prohibited Transfer”"), the InvestorsTOI, in addition to such other remedies as may be available at lawJaw, in equity or hereunder, shall have the put option provided below, and the Founder Significant Shareholders shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Investor TOI shall have the right to sell to the Founder Significant Shareholders the type and number of shares of Common Stock equal to the number of shares that such Eligible Investor TOI would have been entitled to transfer to the third-party transferee(s) under Section 5.2 hereof purchaser had the Prohibited Transfer under Section 2(c) hereof been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder Significant Shareholders shall be equal to the price per share paid by the third-party transferee(s) purchaser to the Founder Significant Shareholders in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Significant Shareholders shall also reimburse each Eligible Investor for any and all fees and expense, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s rights under Section 5.TOI for
(ii) Within thirty ninety (3090) days after the later of the dates on which the Eligible Investor TOI (A) received notice of the Prohibited Transfer or (B) otherwise became aware of the Prohibited Transfer, each Eligible Investor TOI shall, if exercising the option created hereby, deliver to the Founder Significant Shareholders the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder Significant Shareholders shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor TOI, pursuant to this Section 54(b), pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(iSection 4(b)(i), in cash or by other means acceptable to the Eligible InvestorTOI.
(civ) Notwithstanding the foregoing, any attempt by a Founder Significant Shareholder to transfer Founders Shares Stock in violation of Section 5 2 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) transferee as the holder of such shares, shares without the written consent of two-thirds (2/3) in interest of the Eligible InvestorsTOI.
Appears in 1 contract
Prohibited Transfers. (a) In the event any Founder should sell any Founders Shares in contravention of the co-sale rights of the Investors under Section 5 (a “Prohibited Transfer”), the Investors, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Investor shall have the right to sell to the Founder the type and number of shares of Common Stock equal to the number of shares that such Eligible Investor would have been entitled to transfer to the third-party transferee(s) under Section 5.2 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder shall be equal to the price per share paid by the third-party transferee(s) to the Founder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder shall also reimburse each Eligible Investor for any and all fees and expense, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s rights under Section 5. [***] Information has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.
(ii) Within thirty (30) days after the later of the dates on which the Eligible Investor (A) received notice of the Prohibited Transfer or (B) otherwise became aware of the Prohibited Transfer, each Eligible Investor shall, if exercising the option created hereby, deliver to the Founder the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor pursuant to this Section 5, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(i), in cash or by other means acceptable to the Eligible Investor.
(c) Notwithstanding the foregoing, any attempt by a Founder to transfer Founders Shares in violation of Section 5 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder of such shares, without the written consent of two-thirds (2/3) in interest of the Eligible Investors.
Appears in 1 contract
Samples: Series E Preferred Stock Purchase Agreement (Fluidigm Corp)
Prohibited Transfers. (a) 5.1 In the event any the Founder should sell any Founders Shares in contravention of the co-sale rights of the Investors Holders under Section 5 this Agreement (a “Prohibited Transfer”), the InvestorsHolders, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder shall be bound by the applicable provisions of such put option.
(b) 5.2 In the event of a Prohibited Transfer, each Eligible Investor Holder shall have the right to sell to the Founder, and the Founder shall be obligated to purchase from such Holder, the type and number of shares of Common Stock Ordinary Shares equal to the number of shares that such Eligible Investor Holder would have been entitled to transfer to the third-party transferee(s) purchaser in the Prohibited Transfer under Section 5.2 3 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(ia) The price per share at which the shares are to be sold to the Founder shall be equal to the price per share paid by the third-party transferee(s) to the Founder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder shall also reimburse each Eligible Investor for any and all fees and expense, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s rights under Section 5.
(iib) Within thirty ninety (3090) days after the later of the dates on which the Eligible Investor a Holder (Ai) received receives notice of the Prohibited Transfer or (Bii) otherwise became becomes aware of the Prohibited Transfer, each Eligible Investor Holder shall, if exercising the put option created hereby, deliver to the Founder duly executed instrument(s) of transfer and the certificate or certificates representing shares that number of Ordinary Shares to be sold, each or, at the Holder’s option, a certificate or certificates representing that number of Preference Shares that is at such time convertible into the number of Ordinary Shares to be properly endorsed for transfersold.
(iiic) The Founder shall, upon receipt of the duly executed instrument(s) of transfer and certificate or certificates for the shares to be sold by an Eligible Investor a Holder pursuant to this Section 55.2, pay the aggregate purchase price therefor and the amount of reimbursable fees and expensestherefor, as specified in subparagraph 5.5(b)(iSection 5.2(a), in cash or by other means acceptable to the Eligible Investor.
(c) Notwithstanding Holder. The Founder shall also reimburse the foregoingHolder for any and all reasonable fees and expenses, any attempt by a Founder including reasonable legal fees and expenses, incurred pursuant to transfer Founders Shares in violation of Section 5 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder exercise of such shares, without the written consent of two-thirds (2/3) in interest of the Eligible InvestorsHolder’s rights hereunder.
Appears in 1 contract
Samples: Right of First Refusal and Co Sale Agreement (Cloudminds Inc.)
Prohibited Transfers. (a) In the event that any Founder Stockholder should sell any Founders Stockholder Shares in contravention of the co-sale rights of the Investors each Series B Holder and Series D Holder under Section 5 this Agreement (a “Prohibited Transfer”"PROHIBITED TRANSFER"), the Investorseach Series B Holder and Series D Holder, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder selling Stockholder shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Investor Series B Holder and Series D Holder shall have the right to sell to the Founder selling Stockholder the type and number of shares of Common Stock or Preferred Stock equal to the number of shares that such Eligible Investor each Series B Holder and Series D Holder would have been entitled to transfer to the third-party transferee(s) purchaser under Section 5.2 9.1(b) hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to by the Founder selling Series B Holder and Series D Holder shall be equal to the price per share paid by the third-party transferee(s) purchaser to the Founder selling Stockholder in the such Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder selling Stockholder shall also reimburse each Eligible Investor Series B Holder and Series D Holder for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s Series B Holder's and Series D Holder's rights under Section 59.1 and this Section 9.4.
(ii) Within thirty one hundred twenty (30120) business days after the later of the dates date on which the Eligible Investor (A) a Series B Holder and Series D Holder received notice of the Prohibited Transfer or (B) otherwise became aware of the Prohibited Transfer, each Eligible Investor such Series B Holder and Series D Holder shall, if exercising the option created hereby, deliver to the Founder selling Stockholder the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder selling Stockholder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor a Series B Holder or Series D Holder, pursuant to this Section 59.4(b), pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(iSection 9.4(b)(i), in cash or by other means acceptable to the Eligible Investor.
(civ) Notwithstanding the foregoing, any attempt by a Founder the selling Stockholder to transfer Founders Stockholder Shares in violation of Section 5 9.1 hereof shall be void voidable at the option (which option must be exercised within fifteen (15) business days after the date on which a Series B Holder or Series D Holder received notice of a Prohibited Transfer) of any Series B Holder or Series D Holder if such Series B Holder or Series D Holder does not elect to exercise the put option set forth in this Section 9.4, and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) transferee as the holder of such shares, shares without the written consent of two-thirds (2/3) a majority in interest of the Eligible InvestorsSeries B Holders and Series D Holders.
Appears in 1 contract
Samples: Investors' Rights Agreement (Jato Communications Corp)
Prohibited Transfers. (a) In the event any Founder that a Selling Stockholder should sell any Founders Shares Stock in contravention of the co-sale rights of the Investors under Section 5 this Agreement (a “"Prohibited Transfer”"), the Investorseach holder of such co-sale rights, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder such Selling Stockholder shall be bound by the applicable provisions of such option.
(b) . In the event of a Prohibited Transfer, each Eligible Investor holder of co-sale rights shall have the right to sell to the Founder such Selling Stockholder the type and number of shares of Common Stock equal to the number of shares that such Eligible Investor each holder of co-sale rights would have been entitled to transfer to the third-party transferee(s) purchaser under Section 5.2 4(b) hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder Selling Stockholder shall be equal to the price per share paid by the third-party transferee(s) purchaser to the Founder such Selling Stockholder in the such Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Selling Stockholder shall also reimburse each Eligible Investor co-sale rights holder for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s rights under Section 54.
(ii) Within thirty ninety (3090) days after the later of the dates date on which the Eligible Investor (A) a holder of co-sale rights received notice of the Prohibited Transfer or (B) otherwise became aware of the Prohibited Transfer, each Eligible Investor such Person shall, if exercising the option created hereby, deliver to the Founder Selling Stockholder the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder Such Selling Stockholder shall, upon receipt of the certificate or certificates certificate for the shares to be sold by an Eligible Investor a co-sale rights holder pursuant to this Section 54(e), pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(iSection 4(e)(i), in cash or by other means acceptable to the Eligible Investorco-sale rights holder.
(c) Notwithstanding the foregoing, any attempt by a Founder to transfer Founders Shares in violation of Section 5 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder of such shares, without the written consent of two-thirds (2/3) in interest of the Eligible Investors.
Appears in 1 contract
Samples: Stockholders' Agreement (Inflow Inc)
Prohibited Transfers. (a) 4.1 In the event any that a Founder should sell Transfer any Founders Shares shares of Founder Stock in contravention of the co-sale rights of the Investors each Investor under Section 5 this Agreement (a “Prohibited Transfer”"PROHIBITED TRANSFER"), the Investorseach Investor, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder shall be bound by the applicable provisions of such option.
(b) 4.2 In the event of a Prohibited Transfer, each Eligible Investor shall have the right to sell to the Founder the type and number of shares of Common Stock equal to the number of shares that such Eligible each Investor would have been entitled to transfer to the third-party transferee(s) purchaser under Section 5.2 2.4 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(iA) The price per share at which the shares are to be sold to the Founder shall be equal to the price per share paid by the third-party transferee(s) purchaser to the Founder in the such Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder shall also reimburse each Eligible Investor for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s 's rights under Section 52.4.
(iiB) Within thirty ninety (3090) days after the later of the dates date on which the Eligible an Investor (A) received notice of the Prohibited Transfer or (B) otherwise became aware of the Prohibited Transfer, each Eligible such Investor shall, if exercising the option created hereby, deliver to the Founder the certificate or certificates representing shares to be sold, each certificate to be free and clear of any liens, claims or encumbrances and properly endorsed for transfer.
(iiiC) The Founder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor Investor, pursuant to this Section 54.2, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(iSection 4.2(a), in cash or by other means acceptable to the Eligible Investor.
(cD) Notwithstanding the foregoing, any attempt by a Founder to transfer Founders Shares shares of Founder Stock in violation of Section 5 2.4 hereof shall be void voidable at the option of a majority in interest of the Investors if a majority in interest of the Investors do not elect to exercise the put option set forth in this Section 4, and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) transferee as the holder of such shares, shares without the written consent of two-thirds (2/3) a majority in interest of the Eligible Investors.
Appears in 1 contract
Samples: Right of First Refusal and Co Sale Agreement (Imarx Therapeutics Inc)
Prohibited Transfers. (a) In the event any Founder Transferor should sell any Founders Shares Equity Securities in contravention of the co-sale rights of the Investors under Section 5 Sections 11.1, 11.2 or 11.3 (each a “Prohibited Transfer”), the Investorsnon-breaching Offerees, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder such Transferor shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Investor the non-breaching Offerees shall have the right to sell to the Founder Transferor the type and number of shares of Common Stock Equity Securities equal to the number of shares that such Eligible Investor Equity Securities the non-breaching Offerees would have been entitled to transfer to the third-party transferee(s) purchase under Section 5.2 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereof11.2. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are arc to be sold to the Founder Transferor shall be equal to the higher of fair market value and the price per share paid by the third-party transferee(s) to the Founder Transferor in the a Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Transferor shall also reimburse each Eligible Investor the nonbreaching Offerees for any and all reasonable fees and expenseexpenses, including reasonable legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s such non-breaching Offerees’ rights under Section 5.11. For purposes of this Section 11.7, fair market value shall be determined by an independent, reputable investment bank retained by the non-breaching Offerees;
(ii) Within thirty ninety (3090) days after the later of the dates on which the Eligible Investor nonbreaching Offerees (A) received notice of the a Prohibited Transfer or (B) otherwise became becomes aware of the a Prohibited Transfer, each Eligible Investor the non-breaching Offerees shall, if exercising the option created hereby, deliver to the Founder Transferor the certificate or certificates representing shares to be soldsold under this Section 13.7 by the non-breaching Offerees, each certificate to be properly endorsed for transfer.
(iii) The Founder Transferor shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor the non-breaching Offerees, pursuant to this Section 511.7, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(i11.7(b)(i), in cash or by other means acceptable to the Eligible Investornon-breaching Offerees.
(civ) Notwithstanding the foregoing, any attempt by a Founder the Transferor to transfer Founders Shares Equity Securities in violation of this Section 5 hereof 11 shall be void void, and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder Offeree of such shares, shares without the written consent of two-thirds (2/3) in interest the Holders who hold at least 66.67% of the Eligible Investorsoutstanding Series A Preferred Shares.
Appears in 1 contract
Prohibited Transfers. (a) In the event any Founder that a Selling -------------------- Stockholder should sell any Founders Shares Stock in contravention of the co-sale rights of the Investors under Section 5 this Agreement (a “"Prohibited Transfer”"), the Investorseach holder of such co-sale rights, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder such Selling Stockholder shall be bound by the applicable provisions of such option.
(b) . In the event of a Prohibited Transfer, each Eligible Investor holder of co-sale rights shall have the right to sell to the Founder such Selling Stockholder the type and number of shares of Common Stock equal to the number of shares that such Eligible Investor each holder of co-sale rights would have been entitled to transfer to the third-party transferee(s) purchaser under Section 5.2 4(b) hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder Selling Stockholder shall be equal to the price per share paid by the third-party transferee(s) purchaser to the Founder such Selling Stockholder in the such Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Selling Stockholder shall also reimburse each Eligible Investor co-sale rights holder for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s rights under Section 54.
(ii) Within thirty ninety (3090) days after the later of the dates date on which the Eligible Investor (A) a holder of co-sale rights received notice of the Prohibited Transfer or (B) otherwise became aware of the Prohibited Transfer, each Eligible Investor such Person shall, if exercising the option created hereby, deliver to the Founder Selling Stockholder the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder Such Selling Stockholder shall, upon receipt of the certificate or certificates certificate for the shares to be sold by an Eligible Investor a co-sale rights holder pursuant to this Section 54(e), pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(iSection 4(e)(i), in cash or by other means acceptable to the Eligible Investorco-sale rights holder.
(c) Notwithstanding the foregoing, any attempt by a Founder to transfer Founders Shares in violation of Section 5 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder of such shares, without the written consent of two-thirds (2/3) in interest of the Eligible Investors.
Appears in 1 contract
Samples: Stockholders' Agreement (Inflow Inc)
Prohibited Transfers. (a) In the event any that the Founder should sell any Founders Shares Co-Sale Stock in contravention of the co-sale rights of the Investors Stockholder under Section 5 this Agreement (a “"Prohibited Transfer”"), and the InvestorsStockholder and the Company are unable to void such transfer pursuant to Section 4(b)(iv) hereof, the Stockholder (in addition to such other remedies as may be available at law, in equity or hereunder, ) shall have the put option provided below, and the Founder shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Investor the Stockholder shall have the right to sell to the Founder the type and number of shares of Common Stock equal to the number of shares that such Eligible Investor the Stockholder would have been entitled to transfer to the third-party transferee(s) purchaser under Section 5.2 2(c) hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder shall be equal to the price per share paid by the third-party transferee(s) purchaser to the Founder in the such Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder shall also reimburse each Eligible Investor the Stockholder for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s Stockholder's rights under Section 52.
(ii) Within thirty ninety (3090) days after the later of the dates date on which the Eligible Investor (A) Stockholder received notice of the Prohibited Transfer or (B) otherwise became aware of the Prohibited Transfer, each Eligible Investor the Stockholder shall, if exercising the option created hereby, deliver to the Founder the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor the Stockholder, pursuant to this Section 54(b), pay the aggregate purchase price therefor therefore and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(iSection 4(b)(i), in cash or by other means acceptable to the Eligible Investor.Stockholder. CO-SALE AGREEMENT
(civ) Notwithstanding the foregoing, any attempt by a the Founder to transfer Founders Shares Co-Sale Stock in violation of Section 5 hereof a Prohibited Transfer shall be void void, and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) transferee as the holder of such shares, shares without the Stockholder's prior written consent of two-thirds (2/3) in interest of the Eligible Investorsconsent.
Appears in 1 contract
Prohibited Transfers. (a) In the event any Founder that a Selling Shareholder should sell any Founders Offered Shares in contravention of the co-sale purchase rights of the Investors Holders under Section 5 4.2 (a “Prohibited Transfer”), the InvestorsHolders, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, below and the Founder such Selling Shareholder shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Investor Holder shall have the right to sell to the Founder such Selling Shareholder the type and number of shares of Common Stock Ordinary Shares or Series A Shares equal to the number of shares that such Eligible Investor each Selling Shareholder would have been entitled to transfer Transfer to the third-party transferee(s) under Section 5.2 4.2 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof (assuming no Holders had elected to become Purchasing Holders). Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder such Selling Shareholder shall be equal to the price per share paid by the third-party transferee(s) to the Founder such Selling Shareholder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Selling Shareholder shall also reimburse each Eligible Investor Holder for any and all fees and expenseexpenses, including reasonable legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible InvestorHolder’s rights under Section 54.
(ii) Within thirty ninety (3090) days after the later of the dates on which the Eligible Investor Holder (A) received notice of the Prohibited Transfer or (B) otherwise became aware of the Prohibited Transfer, each Eligible Investor Holder shall, if exercising the option created hereby, deliver to the Founder such Selling Shareholder the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder Selling Shareholder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor a Holder, pursuant to this Section 54.5, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(iSection 4.5(b)(i), in cash or by other means acceptable to the Eligible Investorsuch Holder.
(civ) Notwithstanding the foregoing, any attempt by a Founder such Selling Shareholder to transfer Founders Transfer Offered Shares in violation of Section 5 4 hereof shall be void and the Company agrees it will not effect such a transfer Transfer nor will it treat any alleged transferee(s) as the holder of such shares, shares without the written consent of two-thirds (2/3) a majority in interest of the Eligible InvestorsHolders.
Appears in 1 contract
Samples: Shareholders Agreement (JA Solar Holdings Co., Ltd.)
Prohibited Transfers. (a) In the event that a Common Stockholder or Investor (a "Prohibited Transferee") should Transfer any Founder should sell any Founders Shares Stock in contravention of the right of first refusal or co-sale rights of the Investors and/or Common Stockholders, as the case may be, under Section 5 this Agreement (a “"Prohibited Transfer”"), each Investor or Common Stockholder, as the Investorscase may be, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder Prohibited Transferee shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Investor and/or Common Stockholder, as the case may be, shall have the right to purchase from (to the extent the Prohibited Transferee still owns Stock) or sell to the Founder Prohibited Transferee, as applicable, the type and number of shares of Common Stock equal to the number of shares that such Eligible Investor would have been entitled to transfer purchase from or sell to the third-party transferee(s) purchaser under Sections 3 and 5 hereof or such Common Stockholder would have been entitled to purchase under Section 5.2 4 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be purchased from or sold to the Founder Prohibited Transferee shall be equal to the price per share paid by the third-party transferee(s) Proposed Transferee to the Founder Prohibited Transferee in the such Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Prohibited Transferee shall also reimburse each Eligible Investor or Common Stockholder for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s 's rights under Sections 3 or 5 or the Common Stockholder's rights under Section 5.
4. (ii) Within thirty (30) 30 days after the later of the dates date on which an Investor or Common Stockholder, as the Eligible Investor (A) case may be, received notice of the Prohibited Transfer or (B) otherwise became aware of the Prohibited Transfer, each Eligible such Investor or Common Stockholder shall, if exercising the option created hereby, deliver to the Founder Prohibited Transferee payment for the aggregate purchase price or the certificate or certificates representing shares to be purchased or sold, each certificate to be properly endorsed for transfer.
(iii) The Founder Prohibited Transferee shall, upon receipt of the purchase price or certificate or certificates for the shares to be purchased or sold by an Eligible Investor or Common Stockholder, pursuant to this Section 57(b), deliver to the Investor or Common Stockholder the certificate or certificates representing the shares to be purchased or pay the aggregate purchase price therefor therefor, as applicable, and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(iSection 7(b)(i), in cash or by other means acceptable to the Eligible InvestorInvestor or the Common Stockholder.
(civ) Notwithstanding the foregoing, (A) any attempt by a Founder Common Stockholder to transfer Founders Shares Transfer Stock in violation of Section Sections 3 or 5 hereof shall be void and voidable at the Company agrees it will not effect such option of a transfer nor will it treat any alleged transferee(s) as majority-in-interest of the holder of such shares, without the written consent of two-thirds (2/3) Investors if a majority in interest of the Eligible Investors.Investors do not elect to exercise the option set forth in this Section 7 and
Appears in 1 contract
Samples: Right of First Refusal and Co Sale Agreement (Gp Strategies Corp)
Prohibited Transfers. (a) Except as otherwise provided in this Agreement, each Common Holder will not sell, assign, transfer, pledge, hypothecate or otherwise encumber or dispose of in any way, all of, any part of or any interest in such Common Holder’s Equity Securities. Any sale, assignment, transfer, pledge, hypothecation or other encumbrance or disposition of Equity Securities not made in conformance with this Agreement shall be null and void, shall not be recorded on the books of the Company and shall not be recognized by the Company.
(b) In the event any Founder a Common Holder should sell any Founders Shares Equity Securities in contravention of the co-sale rights of the Investors Holders under Section 5 2.2 (a “Prohibited Transfer”), the InvestorsHolders, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided belowbelow under Section 2.5(c), and the Founder such Common Holder shall be bound by the applicable provisions of such option.
(bc) In the event of a Prohibited Transfer, each Eligible Investor Holder shall have the right to sell to the Founder Common Holder making such Prohibited Transfer the type and number of shares of Common Stock Equity Securities equal to the number of shares that such Eligible Investor each Holder would have been entitled to transfer to the third-party transferee(s) under Section 5.2 2.2 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder Common Holder shall be equal to the price per share paid by the third-party transferee(s) to the Founder Common Holder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Common Holder shall also reimburse each Eligible Investor Holder for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible InvestorHolder’s rights under Section 52.2.
(ii) Within thirty ninety (3090) days after the later of the dates date on which the Eligible Investor Holder (A) received receives notice of the Prohibited Transfer or (B) otherwise became becomes aware of the Prohibited Transfer, each Eligible Investor Holder shall, if exercising the option created hereby, deliver to the Founder Common Holder the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder Common Holder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor a Holder pursuant to this Section 52.5, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(i), expenses reimbursable under Section 2.5(c)(i) in cash or by other means acceptable to the Eligible InvestorHolder.
(c) Notwithstanding the foregoing, any attempt by a Founder to transfer Founders Shares in violation of Section 5 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder of such shares, without the written consent of two-thirds (2/3) in interest of the Eligible Investors.
Appears in 1 contract
Samples: First Refusal and Co Sale Agreement (Rise Companies Corp)
Prohibited Transfers. (a) In the event any Founder a Shareholder (a "Transferring Shareholder") should sell any Founders Shares Stock in contravention of the co-sale rights of the Investors Shareholders under Section 5 this agreement (a “"Prohibited Transfer”"), the Investorsother Shareholders (the Non-Transferring Shareholders"), in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder Transferring Shareholder shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Investor any Non-Transferring Shareholder shall have the right to sell to the Founder Transferring Shareholder the type and number of shares of Common Stock equal to the number of shares that such Eligible Investor the Non-Transferring Shareholders would have been entitled to transfer to the third-party transferee(s) purchaser under Section 5.2 2(c) hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder Transferring Shareholder shall be equal to the price per share paid by the third-party transferee(s) purchaser to the Founder Transferring Shareholder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Transferring Shareholder shall also reimburse each Eligible Investor the Non-Transferring Shareholders for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s Non-Transferring Shareholder's rights under Section 52.
(ii) Within thirty ninety (3090) days after the later of the dates on which the Eligible Investor any Non-Transferring Shareholder (A) received notice of the Prohibited Transfer or (B) otherwise became become aware of the Prohibited Transfer, each Eligible Investor the Non-Transferring Shareholder shall, if exercising the option created hereby, deliver to the Founder Transferring Shareholder the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder Transferring Shareholder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor any Non-Transferring Shareholder, pursuant to this Section 5subparagraph 4(b), pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(i4(b)(i), in cash or by other means acceptable to the Eligible InvestorNon-Transferring Shareholder.
(c) Notwithstanding the foregoing, any attempt by a Founder to transfer Founders Shares in violation of Section 5 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder of such shares, without the written consent of two-thirds (2/3) in interest of the Eligible Investors.
Appears in 1 contract
Prohibited Transfers. (a) 2.1 In the event a Shareholder should Transfer any Founder should sell any Founders Shares in contravention of the co-sale rights of the Investors under Section 5 this Agreement (a “"Prohibited Transfer”"), the Investorseach Investor, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder Shareholder shall be bound by the applicable provisions of such option.
(b) 2.2 In the event of a Prohibited Transfer, each Eligible Investor shall have the right to sell to the Founder transferring Shareholder the type and number of shares of Common Stock equal to the number of shares that such Eligible each Investor would have been entitled to transfer to the third-party transferee(s) under Section 5.2 hereof purchaser had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(ia) The price per share at which the shares are to be sold to the Founder Shareholder shall be equal to the price per share paid by the third-party transferee(s) purchaser to the Founder Shareholder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Shareholder shall also reimburse each Eligible Investor for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s 's rights under Section 51.2.
(iib) Within thirty ninety (3090) days after the later of the dates on which the Eligible Investor (A) received notice of the Prohibited Transfer Transfer, or (B) otherwise became aware of the Prohibited Transfer, each Eligible Investor shall, if exercising the option created hereby, deliver to the Founder Shareholder the certificate certificates or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iiic) The Founder Shareholder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor Investor, pursuant to this Section 5subparagraph 2.2(c), pay the aggregate purchase price therefor and the amount of reimbursable fees and expensesexpense, as specified in subparagraph 5.5(b)(i2.2(a), in cash or by other means acceptable to the Eligible Investor.
(cd) Notwithstanding the foregoing, any attempt by a Founder Shareholder to transfer Founders Transfer Shares in violation of Section 5 1 hereof shall be void and the Company agrees it will not effect such a transfer Transfer nor will it treat any alleged transferee(s) transferee as the holder of such shares, shares without the written consent of two-thirds (2/3) a majority in interest of the Eligible Investors.
Appears in 1 contract
Samples: Co Sale Agreement (Techwell Inc)
Prohibited Transfers. (a) Except as otherwise provided in this Agreement, each Common Holder will not sell, assign, transfer, pledge, hypothecate or otherwise encumber or dispose of in any way, all of, any part of or any interest in such Common Holder’s Equity Securities. Any sale, assignment, transfer, pledge, hypothecation or other encumbrance or disposition of Equity Securities not made in conformance with this Agreement shall be null and void, shall not be recorded on the books of the Company and shall not be recognized by the Company.
(b) In the event any Founder a Common Holder should sell any Founders Shares Equity Securities in contravention of the co-sale rights of the Investors Holders under Section 5 2.2 (a “Prohibited Transfer”), the InvestorsHolders, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided belowbelow under Section 2.5(c), and the Founder such Common Holder shall be bound by the applicable provisions of such option.
(bc) In the event of a Prohibited Transfer, each Eligible Investor Holder shall have the right to sell to the Founder Common Holder making such Prohibited Transfer the type and number of shares of Common Stock Equity Securities equal to the number of shares that such Eligible Investor each Holder would have been entitled to transfer to the third-party transferee(s) under Section 5.2 2.2 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder Common Holder shall be equal to the price per share paid by the third-party transferee(s) to the Founder Common Holder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Common Holder shall also reimburse each Eligible Investor Holder for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible InvestorHolder’s rights under Section 52.2.
(ii) Within thirty ninety (3090) days after the later of (A) the dates date on which the Eligible Investor (A) received Holder receives notice of the Prohibited Transfer or and (B) the date on which the Holder otherwise became becomes aware of the Prohibited Transfer, each Eligible Investor Holder shall, if exercising the option created hereby, deliver to the Founder Common Holder the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder Common Holder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor a Holder pursuant to this Section 52.5, pay the aggregate purchase price therefor therefore and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(i), expenses reimbursable under Section 2.5(c)(i) in cash or by other means acceptable to the Eligible InvestorHolder.
(c) Notwithstanding the foregoing, any attempt by a Founder to transfer Founders Shares in violation of Section 5 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder of such shares, without the written consent of two-thirds (2/3) in interest of the Eligible Investors.
Appears in 1 contract
Samples: First Refusal and Co Sale Agreement (WayBetter, Inc.)
Prohibited Transfers. (a) In the event any a Founder should sell any Founders Shares Stock in contravention of the co-sale rights of the Investors Shareholders under Section 5 this agreement (a “"Prohibited Transfer”"), the Investors-3- 112 Shareholders, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Investor Shareholder shall have the right to sell to the Founder the type and number of shares of Common Stock equal to the number of shares that such Eligible Investor each Shareholder would have been entitled to transfer to the third-party transferee(s) purchaser under Section 5.2 2(c) hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder shall be equal to the price per share paid by the third-party transferee(s) purchaser to the Founder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder shall also reimburse each Eligible Investor Shareholder for any and all reasonable fees and expense, including reasonable legal fees and expensesexpense, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s Shareholder's rights under Section 52.
(ii) Within thirty ninety (3090) days after the later of the dates on which the Eligible Investor Shareholder (A) received notice of the Prohibited Transfer or (B) otherwise became aware of the Prohibited Transfer, each Eligible Investor Shareholder shall, if exercising the option created hereby, deliver to the Founder the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor a Shareholder, pursuant to this Section 54(b), pay the aggregate purchase price therefor and the amount of reimbursable fees and expensesexpense, as specified in subparagraph 5.5(b)(iSection 4(b)(i), in cash or by other means acceptable to the Eligible InvestorShareholder.
(civ) Notwithstanding the foregoing, any attempt by a Founder to transfer Founders Shares Stock in violation of Section 5 2 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) transferee as the holder of such shares, shares without the written consent of two-thirds (2/3) a majority in interest of the Eligible InvestorsShareholders.
Appears in 1 contract
Samples: Series D Preferred Stock Purchase Agreement (Combichem Inc)
Prohibited Transfers. 5.1 Any Prohibited Transfer (aas defined below) shall be null and void ab initio, shall not be recorded in the register of members of the Company and shall not be recognized by the Company. Each party hereto acknowledges and agrees that any breach of this Agreement would result in substantial harm to the other parties hereto for which monetary damages alone could not adequately compensate. Therefore, the parties hereto unconditionally and irrevocably agree that any non-breaching party hereto shall be entitled to seek protective orders, injunctive relief and other remedies available at law or in equity (including, without limitation, seeking specific performance or the rescission of purchases, sales and other transfers of shares not made in strict compliance with this Agreement) without the necessity of posting bond or proving that actual damages have been incurred. In the event any Founder Key Ordinary Holder should sell any Founders Shares in contravention of the co-sale rights of the Investors Holders under Section 5 this Agreement (a “Prohibited Transfer”), the InvestorsHolders, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder such Key Ordinary Holder shall be bound by the applicable provisions of such put option.
5.2 If any Key Ordinary Holder becomes obligated to sell any transfer Shares to the Company or any Holder under this Agreement and fails to deliver such Shares in accordance with the terms of this Agreement, the Company and/or such Holder may, at its option, in addition to all other remedies it may have, send to such Key Ordinary Holder the purchase price for such Shares as is herein specified and transfer to the name of the Company or such Holder (bor request that the Company effect such transfer in the name of a Holder) the Shares to be sold.
5.3 In the event of a Prohibited Transfer, each Eligible Investor Holder shall have the right to sell to such Key Ordinary Holder, and such Key Ordinary Holder shall be obligated to purchase from such Holder, the Founder the type and number of shares of Common Stock Ordinary Shares equal to the number of shares that such Eligible Investor Holder would have been entitled to transfer to the third-party transferee(s) purchaser in the Prohibited Transfer under Section 5.2 3 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(ia) The price per share at which the shares are to be sold to the Founder such Key Ordinary Holder shall be equal to the price per share paid by the third-party transferee(s) to the Founder such Key Ordinary Holder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder shall also reimburse each Eligible Investor for any and all fees and expense, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s rights under Section 5.
(iib) Within thirty ninety (3090) days after the later of the dates on which the Eligible Investor a Holder (Ai) received receives notice of the Prohibited Transfer or (Bii) otherwise became becomes aware of the Prohibited Transfer, each Eligible Investor Holder shall, if exercising the put option created hereby, deliver to the Founder such Key Ordinary Holder duly executed instrument(s) of transfer and the certificate or certificates representing shares that number of Ordinary Shares to be sold, each or, at the Holder’s option, a certificate or certificates representing that number of Preference Shares that is at such time convertible into the number of Ordinary Shares to be properly endorsed for transfersold.
(iiic) The Founder Such Key Ordinary Holder shall, upon receipt of the duly executed instrument(s) of transfer and certificate or certificates for the shares to be sold by an Eligible Investor a Holder pursuant to this Section 55.2, pay the aggregate purchase price therefor and the amount of reimbursable fees and expensestherefor, as specified in subparagraph 5.5(b)(iSection 5.2(a), in cash or by other means acceptable to the Eligible Investor.
(c) Notwithstanding Holder. Such Key Ordinary Holder shall also reimburse the foregoingHolder for any and all reasonable fees and expenses, any attempt by a Founder including reasonable legal fees and expenses, incurred pursuant to transfer Founders Shares in violation of Section 5 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder exercise of such shares, without the written consent of two-thirds (2/3) in interest of the Eligible InvestorsHolder’s rights hereunder.
Appears in 1 contract
Samples: Right of First Refusal and Co Sale Agreement (CloudMinds Inc.)
Prohibited Transfers. (a) In the event any that the Founder should sell any Founders Shares Co-Sale Stock in contravention of the co-sale rights of the Investors each Shareholder under Section 5 this Agreement (a “"Prohibited Transfer”"), the Investorseach Shareholder, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Investor Shareholder shall have the right to sell to the Founder the type and number of shares of Common Stock equal to the number of shares that such Eligible Investor each Shareholder would have been entitled to transfer to the third-party transferee(s) purchaser under Section 5.2 2(c) hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder shall be equal to the price per share paid by the third-party transferee(s) purchaser to the Founder in the such Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder shall also reimburse each Eligible Investor Shareholder for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s Shareholder's rights under Section 52.
(ii) Within thirty (30) 90 days after the later of the dates on which the Eligible Investor Shareholder (Aa) received notice of the Prohibited Transfer or (Bb) otherwise became aware of the Prohibited Transfer, each Eligible Investor Shareholder shall, if exercising the option created hereby, deliver to the Founder the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor a Shareholder, pursuant to this Section 54(b), pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(iSection 4(b)(i), in cash or by other means acceptable to the Eligible InvestorShareholder.
(civ) Notwithstanding the foregoing, any attempt by a the Founder to transfer Founders Shares Co-Sale Stock in violation of Section 5 2 hereof shall be void voidable at the option of a majority in interest of the Shareholders if the Shareholders do not elect to exercise the put option set forth in this Section 4, and the Company Corporation agrees it will not effect such a transfer nor will it treat any alleged transferee(s) transferee as the holder of such shares, shares without the written consent of two-thirds (2/3) a majority in interest of the Eligible InvestorsShareholders.
Appears in 1 contract
Samples: Series E Preferred Stock Purchase Agreement (Adesso Healthcare Technology Services Inc)
Prohibited Transfers. (a) No Holder may sell, assign, transfer, give, pledge, hypothecate, mortgage, encumber or dispose of all or any of his Restricted Shares except to a Permitted Transferee or otherwise as expressly permitted by this Agreement.
(b) In the event any Founder should sell Proposed Transferor sells any Founders Restricted Shares in contravention of the co-sale rights of the Investors Holders under Section 5 this Agreement (a “"Prohibited Transfer”"), the InvestorsHolders, in addition to such other remedies as may be available at law, in equity equity, under the Company's Charter or hereunder, shall will have the put option provided below, and the Founder shall such Proposed Transferor will be bound by the applicable provisions of such option.
(bc) In the event of a Prohibited Transfer, each Eligible Investor shall Holder will have the right to sell to the Founder Proposed Transferor, and the type and Proposed Transferor will be obligated to purchase from such Holder, the number of shares of Common Stock equal to the number of shares that such Eligible Investor Holder would have been entitled to transfer to the third-party transferee(s) purchaser in the Prohibited Transfer under Section 5.2 hereof 3 had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall will be made on the following terms and conditions:
(i) The the price per share at which the shares are to be sold to the Founder shall Proposed Transferor will be equal to the price per share paid by the third-party transferee(s) purchaser to the Founder Proposed Transferor in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder shall also reimburse each Eligible Investor for any and all fees and expense, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s rights under Section 5.;
(ii) Within thirty within ninety (3090) days after the later of the dates on which the Eligible Investor a Holder (A) received receives notice of the Prohibited Transfer or (B) otherwise became becomes aware of the Prohibited Transfer, each Eligible Investor shallsuch Holder will notify the other Holders, if exercising the put option created hereby, and deliver to the Founder Proposed Transferor the certificate or certificates representing that number of shares of Common Stock to be sold, or, at the Holder's option, a certificate or certificates representing that number of shares of Preferred Stock that is at such time convertible into the number of shares of Common Stock to be sold, each certificate to be properly endorsed for transfer.; and 7NEXT PAGE
(iii) The Founder shallthe Proposed Transferor will, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor a Holder pursuant to this Section 55(c)(iii), pay the aggregate purchase price therefor and the amount of reimbursable fees and expensestherefor, as specified in subparagraph 5.5(b)(iSection 5(c)(i), in cash or by other means acceptable to the Eligible InvestorHolder. The Proposed Transferor must also reimburse the Holder for any and all reasonable fees and expenses, including reasonable legal fees and expenses, incurred pursuant to the exercise of such Holder's rights hereunder.
(cd) Notwithstanding The Company will not, without the foregoingapproval of Holders holding a majority of the number of outstanding Shares, calculated on the basis of the number of shares of Common Stock constituting the Shares on a fully diluted basis then held by all Holders (other than the Proposed Transferor): (i) permit any attempt by a Founder to transfer Founders on its books of any Shares which have been sold in violation of Section 5 hereof shall be void any of the provisions set forth in this Agreement or (ii) treat as the owner of such Shares, or accord the right to vote as an owner or pay dividends to any transferee to whom such Shares have been sold in violation of any of the provisions set forth in this Agreement.
(e) No Holder may transfer any Restricted Shares until the earlier of March 31, 2006 and the Company agrees it will not effect Liquidity Date, other than to a Permitted Transferee or in accordance with Section 2 and Section 3 of this Agreement or unless such transfer is pursuant to a Qualifying Sale.
(f) At no time shall a Holder transfer nor will it treat any alleged transferee(s) as the holder of such shares, without the written consent of two-thirds (2/3) in interest Shares to a direct competitor of the Eligible InvestorsCompany, as reasonably determined by the Company's Board of Directors, except pursuant to a Qualifying Sale.
Appears in 1 contract
Samples: Stockholders Agreement (Vsource Inc)
Prohibited Transfers. (a) Except as otherwise provided in this Agreement, each Founder will not sell, assign, transfer, pledge, hypothecate or otherwise encumber or dispose of in any way, all of any part of or any interest in the Equity Securities. Any sale, assignment, transfer, pledge, hypothecation or other encumbrance or disposition of Equity Securities not made in conformance with this Agreement shall be null and void, shall not be recorded on the books of the Company and shall not be recognized by the Company.
(b) In the event any the Founder should sell any Founders Shares Equity Securities in contravention of the co-sale rights of the Investors Holders under Section 5 2.2 (a “Prohibited Transfer”), the InvestorsHolders, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided belowbelow under subsection (c), and the Founder shall be bound by the applicable provisions of such option.
(bc) In the event of a Prohibited Transfer, each Eligible Investor Holder shall have the right to sell to the Founder the type and number of shares of Common Stock Equity Securities equal to the number of shares that such Eligible Investor each Holder would have been entitled to transfer to the third-party transferee(s) under Section 5.2 2.2 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder shall be equal to the price per share paid by the third-party transferee(s) to the Founder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder shall also reimburse each Eligible Investor Holder for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible InvestorHolder’s rights under Section 52.2.
(ii) Within thirty ninety (3090) days after the later of the dates date on which the Eligible Investor Holder (A) received receives notice of the Prohibited Transfer or (B) otherwise became becomes aware of the Prohibited Transfer, each Eligible Investor Holder shall, if exercising the option created hereby, deliver to the Founder the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor a Holder pursuant to this Section 52.5, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(i2.5(c)(i), in cash or by other means acceptable to the Eligible InvestorHolder.
(c) Notwithstanding the foregoing, any attempt by a Founder to transfer Founders Shares in violation of Section 5 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder of such shares, without the written consent of two-thirds (2/3) in interest of the Eligible Investors.
Appears in 1 contract
Prohibited Transfers. (a) In the event any a Founder should sell any Founders Shares Stock in contravention of the coCo-sale rights of the Investors Sale Right under Section 5 this Agreement (a “"Prohibited Transfer”"), the Founders and Investors, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the transferring Founder or Investor shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible non-transferring Founder or Investor shall have the right to sell to the transferring Founder or Investor the type and number of shares of Common Stock equal to the number of shares that such Eligible each Founder or Investor would have been entitled to transfer to the third-party transferee(spurchaser under subsection 4(c) under Section 5.2 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the transferring Founder or Investor shall be equal to the price per share paid by the third-party transferee(s) purchaser to the transferring Founder or Investor in the Prohibited Transfer. Such price per share shall be paid to the Eligible The transferring Founder or Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder shall also reimburse each Eligible non- transferring Founder or Investor for any and all fees and expense, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s rights Co-Sale Right under Section 54.
(ii) Within thirty ninety (3090) days after the later of the dates on which the Eligible non-transferring Founder or Investor (A) received notice of the Prohibited Transfer or (B) otherwise became become aware of the Prohibited Transfer, each Eligible non- transferring Founder or Investor shall, if exercising the option created hereby, deliver to the transferring Founder or Investor the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The transferring Founder or Investor shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor a non-transferring Founder or Investor, pursuant to this Section 5subsection 6(b), pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(isubsection 6(b)(i), in cash or by other means acceptable to the Eligible Investor.
(civ) Notwithstanding the foregoing, any attempt by a transferring Founder or Investor to transfer Founders Shares Stock in violation of Section 5 2 and Section 4 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder of such shares, without the written consent of two-thirds (2/3) in interest of the Eligible Investorstransfer.
Appears in 1 contract
Samples: Right of First Refusal and Co Sale Agreement (Hall Kinion & Associates Inc)
Prohibited Transfers. (aA) In the event any Founder a transferring Stockholder should sell any Founders Shares in contravention of the co-sale rights of the Investors Investor Stockholders under Section 5 1.3 (a “"Prohibited Transfer”"), the Investorsother Stockholders, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder such transferor shall be bound by the applicable provisions of such option.
(bB) In the event of a Prohibited Transfer, each Eligible Investor Stockholder shall have the right to sell to the Founder transferor the type and number of shares of Common Stock Shares equal to the number of shares that such Eligible each Investor Stockholder would have been entitled to transfer to the third-party transferee(s) under Section 5.2 1.3 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(iI) The price per share at which the shares Shares are to be sold to the Founder transferor shall be equal to the price per share paid by the third-party transferee(s) to the Founder transferor in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder transferor shall also reimburse each Eligible Investor Stockholder for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s Investor Stockholder's rights under Section 54 of this Agreement.
(iiII) Within thirty sixty (3060) days after the later of the dates on which the Eligible Investor Stockholder (A) received notice of the Prohibited Transfer or (B) otherwise became become aware of the Prohibited Transfer, each Eligible Investor Stockholder shall, if exercising the option created hereby, deliver to the Founder transferor the certificate or certificates representing shares Shares to be sold, each certificate to be properly endorsed for transfer.
(iiiIII) The Founder transferor shall, upon receipt of the certificate or certificates for the shares Shares to be sold by an Eligible Investor Stockholder, pursuant to this Section 51.7, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(i1.7(b)(i), in cash or by other means acceptable to the Eligible InvestorInvestor Stockholder.
(cC) Notwithstanding the foregoing, any attempt by a Founder Stockholder to transfer Founders Shares in violation of Section 5 hereof Sections 1.2 through 1.6 hereof, as applicable, shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder of such shares, without the written consent of two-thirds (2/3) in interest of the Eligible Investors.
Appears in 1 contract
Prohibited Transfers. (aA) In the event that a Shareholder should Transfer any Founder should sell any Founders Shares Stock in contravention of the co-sale rights right of the Investors under Section 5 this Agreement (a “"Prohibited Transfer”"), the Investorseach Investor, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder such Shareholder shall be bound by the applicable provisions of such option.
(bB) In the event of a Prohibited Transfer, each Eligible Investor shall have the right to sell to the Founder such Shareholder the type and number of shares of Common Stock equal to the number of shares that such Eligible Investor would have been entitled to transfer to the third-party transferee(s) purchaser under Section 5.2 3(c) hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(iI) The price per share at which the shares are to be sold to the Founder Shareholder shall be equal to the price per share paid by the third-party transferee(s) purchaser to the Founder such Shareholder in the such Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Shareholder shall also reimburse each Eligible such Investor for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible such Investor’s 's rights under Section 53.
(iiII) Within thirty (30) 90 days after the later of the dates date on which the Eligible such Investor (A) received notice of the Prohibited Transfer or (B) otherwise became aware of the Prohibited Transfer, each Eligible such Investor shall, if exercising the option created hereby, deliver to the Founder Shareholder the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iiiIII) The Founder Such Shareholder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor such Investor, pursuant to this Section 55(b), pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(iSection 5(b)(i), in cash or by other means acceptable to the Eligible such Investor.
(cIV) Notwithstanding the foregoing, any attempt by a Founder Shareholder to transfer Founders Shares Stock in violation of Section 5 3 hereof shall be void voidable at the option of such Investor if such Investor does not elect to exercise the put option set forth in this Section 5, and the Company agrees it will shall not effect such a transfer nor will shall it treat any alleged transferee(s) transferee as the holder of such shares, shares without the written consent of two-thirds (2/3) in interest of the Eligible Investorssuch Investor.
Appears in 1 contract
Samples: First Refusal and Co Sale Agreement (Ovation Products Corp)
Prohibited Transfers. (a) In the event any a Founder should sell any Founders Shares Stock in contravention of the co-sale rights of the Investors Stockholders under Section 5 this Agreement (a “”Prohibited Transfer”), the InvestorsStockholders, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Investor Stockholder shall have the right to sell to the Founder the type and number of shares of Common Stock equal to the number of shares that such Eligible Investor each Stockholder would have been entitled to transfer to the third-party transferee(s) under Section 5.2 hereof purchaser had the Prohibited Transfer under Section 1(c) hereof been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder shall be equal to the price per share paid by the third-party transferee(s) purchaser to the Founder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder shall also reimburse each Eligible Investor Stockholder for any and all fees and expenseexpenses, including legal fees and expenses, expenses incurred pursuant to the exercise or the attempted exercise of the Eligible InvestorStockholder’s rights under Section 51.
(ii) Within thirty ninety (3090) days after the later of the dates on which the Eligible Investor Stockholder (A) received written notice of the Prohibited Transfer or (B) otherwise became aware of the Prohibited Transfer, each Eligible Investor Stockholder shall, if exercising the option created hereby, deliver to the Founder the certificate or certificates representing shares to be sold, with each certificate to be properly endorsed for transfer.
(iii) The Founder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor a Stockholder, pursuant to this Section 5subparagraph 3(b), pay the aggregate purchase price therefor and the amount of reimbursable fees and expensesexpense, as specified in subparagraph 5.5(b)(i3(b)(i), in cash or by other means acceptable to the Eligible InvestorStockholder.
(civ) Notwithstanding the foregoing, any attempt by a Founder to transfer Founders Shares Stock in violation of Section 5 1 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) transferee as the holder of such shares, shares without the written consent of two-thirds (2/3) a majority in interest of the Eligible InvestorsStockholders.
Appears in 1 contract
Prohibited Transfers. (a) Any attempt by a Founder to transfer Shares in -------------------- violation of Section 1 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee as the holder of such shares without the written consent of the holders of a majority of the Conversion Shares. In the event any a Founder should sell any Founders Shares in contravention of the co-sale rights of the Investors under Section 5 1 (a “"Prohibited Transfer”"), the Investors, in -------------------- addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder shall be bound by the applicable provisions of such option.
(b) . In the event of a Prohibited Transfer, each Eligible Investor shall have the right to sell to the Founder the type and number of shares of Common Stock equal to the number of shares that such Eligible each Investor would have been entitled to transfer to the third-party transferee(s) under Section 5.2 1 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) : The price per share at which the shares are to be sold to the Founder shall be equal to the price per share paid by the third-party transferee(s) to the Founder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder shall also reimburse each Eligible Investor for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s 's rights under Section 5.
1. Within ninety (ii) Within thirty (3090) days after the later of the dates on which the Eligible Investor (A) received notice of the Prohibited Transfer or (B) otherwise became become aware of the Prohibited Transfer, each Eligible Investor shall, if exercising the option created hereby, deliver to the Founder the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) . The Founder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor Investor, pursuant to this Section 5Section, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(i(b)(i), in cash or by other means acceptable to the Eligible Investor.
(c) Notwithstanding the foregoing, any attempt by a Founder to transfer Founders Shares in violation of Section 5 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder of such shares, without the written consent of two-thirds (2/3) in interest of the Eligible Investors.
Appears in 1 contract
Samples: Right of First Refusal and Co Sale Agreement (Northpoint Communications Holdings Inc)
Prohibited Transfers. (a) In the event any a Founder should sell any Founders Founders' Shares (the "Selling Founder") in contravention of the coRight of Co-sale rights Sale of the Investors --------------- under Section 5 this Agreement (a “"Prohibited Transfer”"), the Investorseach Investor, in addition to ------------------- such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Selling Founder shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Investor shall have the right to sell to the Selling Founder the type and number of shares of Common Stock (either directly or through delivery of Preferred Stock) equal to the number of shares that such Eligible each Investor would have been entitled to transfer to the third-party transferee(s) under Section 5.2 hereof purchaser had the Prohibited Transfer under Section 5.3 hereof been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Selling Founder shall be equal to the price per share paid by the third-party transferee(s) purchaser to the Selling Founder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Selling Founder shall also reimburse each Eligible Investor for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s 's rights under Section 55.3.
(ii) Within thirty (30) 90 days after the later of the dates on which the Eligible Investor (Aa) received notice of the Prohibited Transfer or (Bb) otherwise became aware of the Prohibited Transfer, each Eligible Investor shall, if exercising the option created hereby, deliver to the Selling Founder the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Selling Founder shall, upon receipt of the certificate or certificates for the shares to be the sold by an Eligible Investor Investor, pursuant to this Section 5subparagraph 5.5(b), pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(i), in cash or by other means acceptable to the Eligible Investor.
(civ) Notwithstanding the foregoing, any attempt by a Selling Founder to transfer Founders Founders' Shares in violation of Section 5 section 5.3 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) transferee as the holder of such shares, shares without the written consent of two-thirds (2/3) a majority in interest of the Eligible Investors.
Appears in 1 contract
Samples: Investor's Rights Agreement (Marketfirst Software Inc)
Prohibited Transfers. (a) In the event any Founder the Transferring Holder should sell any Founders Shares Equity Securities in contravention of the co-sale rights of the Investors Non-Transferring Holders under Section 5 3.2 (a “"Prohibited Transfer”"), the InvestorsNon-Transferring Holders, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder Transferring Holder shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Investor Non-Transferring Holder shall have the right to sell to the Founder Transferring Holder the type and number of shares of Common Stock Equity Securities equal to the number of shares that such Eligible Investor each Non-Transferring Holder would have been entitled to transfer to the third-party transferee(s) under Section 5.2 3.2 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder Transferring Holder shall be equal to the price per share paid by the third-party transferee(s) to the Founder Transferring Holder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Transferring Holder shall also reimburse each Eligible Investor Non-Transferring Holder for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s Non-Transferring Holder's rights under Section 53.
(ii) Within thirty ninety (3090) days after the later of the dates on which the Eligible Investor Non-Transferring Holder (A) received notice of the Prohibited Transfer or (B) otherwise became become aware of the Prohibited Transfer, each Eligible Investor Non-Transferring Holder shall, if exercising the option created hereby, deliver to the Founder Transferring Holder the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder Transferring Holder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor a Non-Transferring Holder, pursuant to this Section 53.5, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(i3.5(b),
(i) in cash or by other means acceptable to the Eligible InvestorHolder.
(civ) Notwithstanding the foregoing, any attempt by a Founder the Transferring Holder to transfer Founders Shares Equity Securities in violation of Section 5 3 hereof shall be void 6 and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder of such shares, shares without the written consent of two-thirds (2/3) a majority in interest of the Eligible InvestorsNon-Transferring Holders.
Appears in 1 contract
Samples: Common Stock Purchase Agreement (Lets Talk Cellular & Wireless Inc)
Prohibited Transfers. (a) In the event any Founder should sell Seller transfers any Founders Shares Securities in contravention of the right of first refusal and/or co-sale rights of the Investors under Section 5 Holders as set forth in Article V and Article VI (a “"Prohibited Transfer”"), to the Investors--------- ---------- extent such transfer is valid and recorded on the books of and recognized by the Company, the Holders, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder such Seller shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Investor Holder shall have the right to sell to the Founder Seller the type and number of shares of Common Stock Equivalents equal to the number of shares that such Eligible Investor each Holder would have been entitled to transfer to the third-party transferee(s) under Section 5.2 hereof Transferee above had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder Seller shall be equal to the price per share paid by the third-party transferee(s) Transferee to the Founder Seller in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder shall also reimburse each Eligible Investor for any and all fees and expense, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s rights under Section 5.
(ii) Within thirty sixty (3060) days after the later of the dates on which the Eligible Investor Holders (A) received notice of the Prohibited Transfer or (B) otherwise became aware of the Prohibited Transfer, each Eligible Investor Holder shall, if exercising the option created hereby, deliver to the Founder Seller the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder Seller shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor pursuant to this Section 5, a Holder pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(i), in cash or by other means acceptable to the Eligible Investorsuch Holder.
(c) Notwithstanding the foregoing, any attempt by a Founder to transfer Founders Shares in violation of Section 5 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder of such shares, without the written consent of two-thirds (2/3) in interest of the Eligible Investors.
Appears in 1 contract
Samples: Stockholders Agreement (Camden Partners Strategic Ii LLC)
Prohibited Transfers. (a) In the event any that a Founder should sell Transfer any Founders Shares Co-Sale Stock in contravention of the co-sale rights of the Investors each Investor under Section 5 this Agreement (a “"Prohibited Transfer”"), the Investorseach Investor, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the such Founder shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Investor shall have the right to sell to the such Founder the type and number of shares of Common Stock equal to the number of shares that such Eligible each Investor would have been entitled to transfer to the third-party transferee(s) purchaser under Section 5.2 2(c) hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder shall be equal to the price per share paid by the third-party transferee(s) purchaser to the such Founder in the such Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder shall also reimburse each Eligible Investor for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s 's rights under Section 52.
(ii) Within thirty ninety (3090) days after the later of the dates date on which the Eligible an Investor (A) received notice of the Prohibited Transfer or (B) otherwise became aware of the Prohibited Transfer, each Eligible such Investor shall, if exercising the option created hereby, deliver to the Founder the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Such Founder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor Investor, pursuant to this Section 54(b), pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(iSection 4(b)(i), in cash or by other means acceptable to the Eligible Investor.
(civ) Notwithstanding the foregoing, any attempt by a Founder to transfer Founders Shares Co-Sale Stock in violation of Section 5 2 hereof shall be void and voidable at the Company agrees it will not effect such option of a transfer nor will it treat any alleged transferee(s) as the holder of such shares, without the written consent of two-thirds (2/3) majority in interest of the Eligible Investors.Investors if a majority in interest of the Investors do not elect to
Appears in 1 contract
Samples: Series a Preferred Stock Purchase Agreement (Gene Logic Inc)
Prohibited Transfers. (a) Notwithstanding anything to the contrary contained herein, none of the Founders shall, without the prior written consent of a majority in interest of the Ordinary Shares (on an as-converted basis) held by the holders of the Preferred Shares, voting as a single class, Transfer an aggregate of more than twenty percent (20%) of the Ordinary Shares now held by such Founder to any person or entity prior to a Qualified IPO by the Company.
(b) Any attempt by a Founder or a Major Shareholder to Transfer Equity Securities in violation of this Section 4 shall be void and the Company agrees it will not effect such a Transfer nor will it treat any alleged transferee as the holder of such shares without the written consent of a majority in interest of the Ordinary Shares (on an as-converted basis) held by the Non-Selling Holders.
(c) In the event any Founder the Selling Shareholder should sell any Founders Shares Equity Securities in contravention of the co-sale rights of the Investors Non-Selling Holders under this Section 5 4 (a “Prohibited Transfer”"PROHIBITED TRANSFER"), the InvestorsNon-Selling Holders, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided belowbelow under subsection (d), and the Founder Selling Shareholder shall be bound by the applicable provisions of such option.
(bd) In the event of a Prohibited Transfer, each Eligible Investor Non-Selling Holder shall have the right to sell to the Founder Selling Shareholder the type and number of shares of Common Stock Equity Securities equal to the number of shares that such Eligible Investor each Non-Selling Holder would have been entitled to transfer to the third-party transferee(s) under Section 5.2 4 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder Selling Shareholder shall be equal to the price per share paid by the third-party transferee(s) to the Founder Selling Shareholder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Selling Shareholder shall also reimburse each Eligible Investor Non-Selling Holder for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s Non-Selling Holder's rights under Section 54.
(ii) Within thirty twenty (3020) days after the later of the dates on which the Eligible Investor Non-Selling Holder (A) received receives notice of the Prohibited Transfer or (B) otherwise became becomes aware of the Prohibited Transfer, each Eligible Investor Non-Selling Holder shall, if exercising the option created hereby, deliver to the Founder Selling Shareholder the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder Selling Shareholder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor a Non-Selling Holder, pursuant to this Section 54, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(i)(i) above, in cash or by other means acceptable to the Eligible InvestorNon-Selling Holder.
(c) Notwithstanding the foregoing, any attempt by a Founder to transfer Founders Shares in violation of Section 5 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder of such shares, without the written consent of two-thirds (2/3) in interest of the Eligible Investors.
Appears in 1 contract
Samples: Shareholder Agreement (Ctrip Com International LTD)
Prohibited Transfers. (a) In the event any Founder the Transferring Holder should sell any Founders Shares Equity Securities in contravention of the co-sale rights of the Investors Non-Transferring Holders under Section 5 3.2 (a “"Prohibited Transfer”"), the InvestorsNon-Transferring Holders, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder Transferring Holder shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Investor Non-Transferring Holder shall have the right to sell to the Founder Transferring Holder the type and number of shares of Common Stock Equity Securities equal to the number of shares that such Eligible Investor each Non-Transferring Holder would have been entitled to transfer to the third-party transferee(s) under Section 5.2 3.2 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder Transferring Holder shall be equal to the price per share paid by the third-party transferee(s) to the Founder Transferring Holder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Transferring Holder shall also reimburse each Eligible Investor Non-Transferring Holder for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s Non-Transferring Holder's rights under Section 53.
(ii) Within thirty ninety (3090) days after the later of the dates on which the Eligible Investor Non-Transferring Holder (A) received notice of the Prohibited Transfer or (B) otherwise became become aware of the Prohibited Transfer, each Eligible Investor Non-Transferring Holder shall, if exercising the option created hereby, deliver to the Founder Transferring Holder the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder Transferring Holder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor a Non-Transferring Holder, pursuant to this Section 53.5, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(i3.5(b)(i), in cash or by other means acceptable to the Eligible InvestorHolder.
(civ) Notwithstanding the foregoing, any attempt by a Founder the Transferring Holder to transfer Founders Shares Equity Securities in violation of Section 5 3 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder of such shares, without the written consent of two-thirds (2/3) in interest of the Eligible Investors.void
Appears in 1 contract
Samples: Right of First Refusal and Co Sale Agreement (Lets Talk Cellular & Wireless Inc)
Prohibited Transfers. (a) In the event that a Stockholder (a "Prohibited Transferee") should Transfer any Founder should sell any Founders Shares Stock in contravention of the right of first refusal or co-sale rights of the Investors Investors, Series A Stockholders, and/or Common Stockholders under Section 5 Sections 3, 4 or 5, as the case may be, under this Agreement (a “"Prohibited Transfer”"), each Investor, Series A Stockholder, or Common Stockholder, as the Investorscase may be, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder Prohibited Transferee shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Investor Investor, Series A Stockholder, and/or Common Stockholder, as the case may be, shall have the right to purchase from (to the extent the Prohibited Transferee still owns Stock) or sell to the Founder Prohibited Transferee, as applicable, the type and number of shares of Common Stock equal to the number of shares that such Eligible Investor or Series A Stockholder would have been entitled to transfer purchase from or sell to the third-party transferee(s) purchaser under Sections 3 and 5 hereof, or such Common Stockholder would have been entitled to purchase under Section 5.2 hereof 3 and 4 hereof, had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be purchased from or sold to the Founder Prohibited Transferee shall be equal to the price per share paid by the third-party transferee(s) Proposed Transferee to the Founder Prohibited Transferee in the such Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Prohibited Transferee shall also reimburse each Eligible Investor Investor, Series A Stockholder, or Common Stockholder for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s 's rights under Sections 3, 4, or 5, the Series A Stockholder's rights under Section 3, 4, or 5, or the Common Stockholder's rights under Section 3 or 4.
(ii) Within thirty (30) 30 days after the later of the dates date on which an Investor, Series A Stockholder, or Common Stockholder, as the Eligible Investor (A) case may be, received notice of the Prohibited Transfer or (B) otherwise became aware of the Prohibited Transfer, each Eligible Investor such Investor, Series A Stockholder, or Common Stockholder shall, if exercising the option created hereby, deliver to the Founder Prohibited Transferee payment for the aggregate purchase price or the certificate or certificates representing shares to be purchased or sold, each certificate to be properly endorsed for transfer.
(iii) The Founder Prohibited Transferee shall, upon receipt of the purchase price or certificate or certificates for the shares to be purchased or sold by an Eligible Investor Investor, Series A Stockholder, or Common Stockholder, pursuant to this Section 57(b), deliver to the Investor, Series A Stockholder or Common Stockholder the certificate or certificates representing the shares to be purchased or pay the aggregate purchase price therefor therefor, as applicable, and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(iSection 7(b)(i), in cash or by other means acceptable to the Eligible Investor, the Series A Stockholder, or the Common Stockholder.
(civ) Notwithstanding the foregoing, (A) any attempt by a Founder Common Stockholder to transfer Founders Shares Transfer Stock in violation of Sections 3 or 5 shall be voidable at the option of a majority-in-interest of the Other Common Stockholders, the Investors and Series A Stockholders (voting as a single class on an as converted basis) if a majority in interest of the Other Common Stockholders, the Investors and Series A Stockholders (taken as a single class on an as converted basis) do not elect to exercise the option set forth in this Section 7, and (B) any attempt by a Preferred Stockholder to Transfer Stock in violation of Section 5 4 hereof shall be void voidable at the option of a majority-in-interest of the Common Stockholders and the other Preferred Stockholders if a majority in interest of the Common Stockholders and the other Preferred Stockholders do not elect to exercise the option set forth in this Section 7, and the Company agrees it will not effect such a transfer Transfer nor will it treat any alleged transferee(s) transferee as the holder of such shares, shares without the written consent of two-thirds (2/3) a majority in interest of the Eligible Investors, the Series A Stockholders, and/or the Common Stockholders, as the case may be.
Appears in 1 contract
Samples: Right of First Refusal and Co Sale Agreement (Gp Strategies Corp)
Prohibited Transfers. (a) In the event any Founder should sell any Founders Shares If a Shareholder engages in contravention of the co-sale rights of the Investors under Section 5 (a “Prohibited Transfer”), the InvestorsHolder, in addition to such other remedies as may be available at lawlaw or in equity, in equity or hereunder, shall have the put option provided below, and the Founder shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Investor shall have the right to sell to the Founder the type and Shareholder engaging in such Prohibited Transfer that number of shares of Common Stock Shares or Convertible Securities owned by the Holder which shall be equal to the number of shares that such Eligible Investor the Holder would have been entitled to transfer Transfer to the third-party transferee(s) under Section 5.2 hereof had purchaser in the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofTransfer. Such sale shall be made on the following terms and conditions:
(ia) The price per share at which the shares are to such Shares or Convertible Securities shall be sold to the Founder Shareholder shall be equal or equivalent to the price per share paid by the third-party transferee(s) purchase offeror to the Founder Shareholder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Shareholder shall also reimburse each Eligible Investor the Holder for any and all reasonable fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible InvestorHolder’s rights under Section 5this Section.
(iib) Within thirty twenty (3020) days Business Days after the later earlier of the dates date on which the Eligible Investor Holder (Ai) received receives notice from a Shareholder of the Prohibited Transfer or (B) otherwise became aware of the a Prohibited Transfer, each Eligible Investor or (ii) otherwise becomes aware of a Prohibited Transfer, the Holder shall, if exercising the option created herebyit determines in its sole discretion to exercise its sale rights pursuant to this Section, deliver to the Founder Shareholder engaging in the Prohibited Transfer the certificate or certificates representing shares the securities to be sold, each certificate to be sold hereunder free and clear of all adverse claims and properly endorsed for transferTransfer.
(iiic) The Founder Shareholder engaging in the Prohibited Transfer shall, upon receipt of the certificate or certificates for the shares Shares or Convertible Securities to be sold by an Eligible Investor pursuant to this Section 5the Holder hereunder, pay the aggregate purchase price therefor and plus the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(i)above, in cash by wire transfer of immediately available funds or by other means acceptable certified or cashier’s check made payable to the Eligible Investororder of the Holder.
(cd) Notwithstanding the foregoing, any attempt by a Founder to transfer Founders Shares Transfer securities of the Company in violation of Section 5 hereof the terms of this Agreement shall be void and the Company agrees it will not effect affect such a transfer Transfer nor will it treat any alleged transferee(s) proposed transferee as the holder of such shares, securities without the written consent of two-thirds (2/3) in interest of the Eligible InvestorsHolder.
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Prohibited Transfers. (a) In the event that Covalent Partners should Transfer any Founder should sell any Founders Shares Co-Sale Stock in contravention of the co-sale rights under this Agreement (a "Prohibited Transfer"), each holder of the Investors under Section 5 (a “Prohibited Transfer”), the Investorsco-sale rights, in addition to such other remedies as may be available at law, law in equity or hereunder, shall have the put option provided below, and the Founder Covalent Partners shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Investor holder of the co-sale rights shall have the right to sell to the Founder Covalent Partners the type and number of shares of Common Stock equal to the number of shares that such Eligible Investor the holder of the co-sale rights would have been entitled to transfer to the third-party transferee(s) purchaser under Section 5.2 3(b), as applicable, hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder Covalent Partners shall be equal to the tot eh price per pre share paid by the third-party transferee(s) purchaser to the Founder Covalent Partners in the such Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Covalent Partners shall also reimburse each Eligible Investor holder of the co-sale rights for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s such holder's rights under Section 53.
(ii) Within thirty ninety (3090) days after the later of the dates date on which the Eligible Investor (A) holder of the co-sale rights received notice of the Prohibited Transfer or (B) otherwise became aware of the Prohibited Transfer, each Eligible Investor such holder of the co-sale rights shall, if exercising the option created hereby, deliver to the Founder Covalent Partners the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder Covalent Partners shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor the holder of the co-sale rights, pursuant to this Section 56(b), pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(iSection 6(b)(i), in cash or by other means acceptable to the Eligible InvestorPurchaser.
(c) Notwithstanding the foregoing, any attempt by a Founder to transfer Founders Shares in violation of Section 5 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder of such shares, without the written consent of two-thirds (2/3) in interest of the Eligible Investors.
Appears in 1 contract
Samples: Stockholder Agreement (Nemazee Hassan & Houston Venture Inc)
Prohibited Transfers. (a) In the event that any Founder Major Investor (a "Violating Investor") should sell any Founders Shares Co-Sale Stock in contravention of the purchase rights of the Company and the Major Investors and the co-sale rights of the Investors under Section 5 this Agreement (a “"Prohibited Transfer”"), the Investorseach Investor, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder such Violating Investor shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Investor shall have the right to sell to the Founder Violating Investor the type and number of shares of Common Stock equal to the number of shares that such Eligible each Investor would have been entitled to transfer to the third-party transferee(s) purchaser under Section 5.2 5.2(d) hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder Violating Investor shall be equal to the price per share paid by the third-party transferee(s) purchaser to the Founder such Violating Investor in the Prohibited Transfer. Such price per share shall be paid to the Eligible The Violating Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder shall also reimburse each Eligible non-selling Investor for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s 's rights under Section 55.2.
(ii) Within thirty ninety (3090) days after the later of the dates on which the Eligible non-selling Investor (Aa) received notice of the Prohibited Transfer or (Bb) otherwise became aware of the Prohibited Transfer, each Eligible non-selling Investor shall, if exercising the option created hereby, deliver to the Founder Violating Investor the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder Violating Investor shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor Investor, pursuant to this Section 55.4(b), pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(i)Section 5.4(b)(i) , in cash or by other means acceptable to the Eligible Investor.
(civ) Notwithstanding the foregoing, any attempt by a Founder any Major Investor to transfer Founders Shares Co-Sale Stock in violation of Section 5 5.2 hereof shall be void voidable at the option of Investors holding more than two-thirds in interest of the Common Stock held by all Investors (on an as-converted basis) if the Investors do not elect to exercise the put option set forth in this Section 5.4, and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) transferee as the holder of such shares, shares without the written consent of two-thirds (2/3) a majority in interest of the Eligible Investors.
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Prohibited Transfers. (a) Except as otherwise provided in this Agreement, each Common Holder will not sell, assign, transfer, pledge, hypothecate, or otherwise encumber or dispose of in any way, directly or indirectly, all of any part of or any interest in the Equity Securities. Any sale, assignment, transfer, pledge, hypothecation or other encumbrance or disposition of Equity Securities not made in conformance with this Agreement shall be null and void, shall not be recorded on the books of the Company and shall not be recognized by the Company.
(b) In the event any Founder Common Holder should sell any Founders Shares Equity Securities in contravention of the co-sale rights of the Investors Preferred Holders and the Non-Selling Common Holders under Section 5 2.2 (a “Prohibited Transfer”), the InvestorsPreferred Holders and the Non-Selling Common Holders, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided belowbelow under subsection (c), and the Founder such Common Holder shall be bound by the applicable provisions of such option.
(bc) In the event of a Prohibited Transfer, each Eligible Investor Preferred Holder and Non-Selling Common Holder shall have the right to sell to the Founder such Common Holder the type and number of shares of Common Stock Equity Securities equal to the number of shares that such Eligible Investor each Preferred Holder would have been entitled to transfer to the third-party transferee(s) under Section 5.2 2.2 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder Common Holder shall be equal to the price per share paid by the third-party transferee(s) to the Founder Common Holder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Common Holder shall also reimburse each Eligible Investor Preferred Holder and Non-Selling Common Holder for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investoreach such Preferred Holder’s and Non-Selling Common Holder’s rights under Section 52.2.
(ii) Within thirty ninety (3090) days after the later of the dates date on which the Eligible Investor Preferred Holder (A) received receives notice of the Prohibited Transfer or (B) otherwise became becomes aware of the Prohibited Transfer, each Eligible Investor Preferred Holder and Non-Selling Common Holder shall, if exercising the option created hereby, deliver to the Founder such Common Holder the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder Common Holder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor a Preferred Holder or Non-Selling Common Holder, pursuant to this Section 52.5, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(i2.5(c)(i), in cash or by other means acceptable to the Eligible Investorsuch Preferred Holder or Non-Selling Common Holder.
(c) Notwithstanding the foregoing, any attempt by a Founder to transfer Founders Shares in violation of Section 5 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder of such shares, without the written consent of two-thirds (2/3) in interest of the Eligible Investors.
Appears in 1 contract
Samples: First Refusal and Co Sale Agreement (New Oriental Education & Technology Group Inc.)
Prohibited Transfers. (a) In the event that a Founder should Transfer any Founder should sell any Founders Shares in contravention of the co-sale rights of the Investors each Investor under Section 5 this Agreement (a “"Prohibited Transfer”"), the Investorseach Investor, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the such Founder shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Investor shall have the right to sell to the such Founder the type and number of shares of Common Stock capital stock equal to the number of shares that such Eligible each Investor would have been entitled to transfer to the third-party transferee(s) purchaser under Section 5.2 3.3 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder shall be equal to the price per share paid by the third-party transferee(s) purchaser to the such Founder in the such Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder shall also reimburse each Eligible Investor for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s 's rights under this Section 53.4.
(ii) Within thirty ninety (3090) days after the later of the dates date on which the Eligible an Investor (A) received notice of the Prohibited Transfer or (B) otherwise became aware of the Prohibited Transfer, each Eligible such Investor shall, if exercising the option created hereby, deliver to the Founder the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Such Founder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor Investor, pursuant to this Section 53.4, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(iSection 3.4(b)(i), in cash or by other means acceptable to the Eligible Investor.
(civ) Notwithstanding the foregoing, any attempt by a Founder to transfer Founders Founder Shares in violation of Section 5 Article 3 hereof shall be void voidable at the option of a majority in interest of the Investors if the Investors do not elect to exercise the put option set forth in this Section 3.4, and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) transferee as the holder of such shares, shares without the written consent of two-thirds (2/3) a majority in interest of the Eligible Investors.
Appears in 1 contract
Prohibited Transfers. (aA) In the event any Founder Kanghui Party should sell any Founders Shares Equity Securities in contravention of the co-sale rights of the Investors Preferred Shareholders under Section 5 2.3 (a “Prohibited Transfer”), the InvestorsPreferred Shareholders, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder such Kanghui Party shall be bound by the applicable provisions of such option.
(bB) In the event of a Prohibited Transfer, each Eligible Investor Preferred Shareholder shall have the right to sell to the Founder Kanghui Party the type and number of shares of Common Stock Equity Securities equal to the number of shares that Equity Securities such Eligible Investor Preferred Shareholder would have been entitled to transfer to the third-party transferee(s) under Section 5.2 2.3 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder Kanghui Party shall be equal to the price per share paid by the third-party transferee(s) to the Founder Kanghui Party in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Kanghui Party shall also reimburse each Eligible Investor Preferred Shareholder for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investorsuch Preferred Shareholder’s rights under Section 52.
(ii) Within thirty ninety (3090) days after the later of the dates on which the Eligible Investor Preferred Shareholder (A) received notice of the Prohibited Transfer or (B) otherwise became becomes aware of the Prohibited Transfer, each Eligible Investor such Preferred Shareholder shall, if exercising the option created hereby, deliver to the Founder Kanghui Party the certificate or certificates representing shares to be soldsold under this Section 2.5 by such Preferred Shareholder, each certificate to be properly endorsed for transfer.
(iii) The Founder Kanghui Party shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor a Preferred Shareholder, pursuant to this Section 52.5, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(iclause (i), in cash or by other means acceptable to the Eligible InvestorPreferred Shareholder.
(civ) Notwithstanding the foregoing, any attempt by a Founder Kanghui Party to transfer Founders Shares Transfer Equity Securities in violation of this Section 5 hereof 2 shall be void void, and the Company agrees it will not effect such a transfer Transfer nor will it treat any alleged transferee(s) as the holder of such shares, shares without the written consent of two-thirds (2/3) a majority in interest of the Eligible InvestorsPreferred Shareholders.
Appears in 1 contract
Prohibited Transfers. (aA) In the event any Founder should sell any Founders Shares Equity Securities in contravention of the co-sale rights of the Investors Preferred Shareholders under Section 5 9.3 (a “Prohibited Transfer”), the InvestorsPreferred Shareholders, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the such Founder shall be bound by the applicable provisions of such option.
(bB) In the event of a Prohibited Transfer, each Eligible Investor Preferred Shareholder shall have the right to sell to the Founder the type and number of shares of Common Stock Equity Securities equal to the number of shares that Equity Securities such Eligible Investor Preferred Shareholder would have been entitled to transfer to the third-party transferee(s) under Section 5.2 9.3 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder shall be equal to the price per share paid by the third-party transferee(s) to the Founder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder shall also reimburse each Eligible Investor Preferred Shareholder for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investorsuch Preferred Shareholder’s rights under Section 59.
(ii) Within thirty ninety (3090) days after the later of the dates on which the Eligible Investor Preferred Shareholder (A) received notice of the Prohibited Transfer or (B) otherwise became becomes aware of the Prohibited Transfer, each Eligible Investor such Preferred Shareholder shall, if exercising the option created hereby, deliver to the Founder the certificate or certificates representing shares to be soldsold under this Section 9.5 by such Preferred Shareholder, each certificate to be properly endorsed for transfer.
(iii) The Founder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor a Preferred Shareholder, pursuant to this Section 59.5, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(iclause (i), in cash or by other means acceptable to the Eligible InvestorPreferred Shareholder.
(civ) Notwithstanding the foregoing, any attempt by a Founder to transfer Founders Shares Transfer Equity Securities in violation of this Section 5 hereof 9 shall be void void, and the Company agrees it will not effect such a transfer Transfer nor will it treat any alleged transferee(s) as the holder of such shares, shares without the written consent of two-thirds (2/3) a majority in interest of the Eligible InvestorsPreferred Shareholders.
Appears in 1 contract
Prohibited Transfers. (a) In the event any Founder that a Investor should sell any Founders Shares Co-Sale Stock in contravention of the rights of first refusal of the Company and the Non-Selling Investors and the co-sale rights of the Investors each Non-Selling Investor under Section 5 this Amended and Restated Right of First Refusal and Co-Sale Agreement (a “"Prohibited Transfer”"), the Investorseach Investor, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder such Investor shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Non-Selling Investor shall have the right to sell to the Founder such Investor the type and number of shares of Common Stock equal to the number of shares that such Eligible each Non-Selling Investor would have been entitled to transfer to the third-party transferee(s) purchaser under Section 5.2 2(c) hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) i. The price per share at which the shares are to be sold to the Founder such Investor shall be equal to the price per share paid by the third-party transferee(s) purchaser to the Founder Investor in the such Prohibited Transfer. Such price per share shall be paid to the Eligible The Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder shall also reimburse each Eligible Non-Selling Investor for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Non-Selling Investor’s 's rights under Section 52(c).
ii. Within ninety (ii) Within thirty (3090) days after the later of the dates on which the Eligible Non-Selling Investor (Aa) received notice of the Prohibited Transfer or (Bb) otherwise became aware of the Prohibited Transfer, each Eligible Non-Selling Investor shall, if exercising the option created hereby, deliver to the Founder Investor the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) . The Founder Investor shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor Non-Selling Investor, pursuant to this Section 54(b), pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(iSection 4(b)(i), in cash or by other means acceptable to the Eligible Non-Selling Investor.
(c) Notwithstanding the foregoing, any attempt by a Founder Investor to transfer Founders Shares Co-Sale Stock in violation of Section 5 2(a) hereof shall be void voidable at the option of the Company, and any attempt by a Investor to transfer Co-Sale Stock in violation of Section 2(b) or 2(c) hereof shall be voidable at the option of a majority in interest of the Non-Selling Investors if, with respect to a transfer in violation of Section 2(c), the Non-Selling Investors do not elect to exercise the put option set forth in this Section 4, and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) transferee as the holder Investor of such shares, shares without the written consent of two-thirds (2/3) a majority in interest of the Eligible Non-Selling Investors.
Appears in 1 contract
Samples: Right of First Refusal and Co Sale Agreement (Symbion Inc/Tn)
Prohibited Transfers. (a) In the event any Founder Skandalaris should sell any Founders Noble Shares in contravention of the co-sale rights of the Investors Shareholders under Section 5 this Agreement (a “"Prohibited Transfer”"), the InvestorsShareholders, in addition to such other remedies as may be available at law, in equity or hereunderunder this Agreement, shall have the put option provided below, and the Founder Skandalaris shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Investor the Shareholders shall have the right to sell to Skandalaris the Founder the type and number of shares of Common Stock Noble Shares equal to the number of shares that each such Eligible Investor Shareholder would have been entitled to transfer to the third-party transferee(s) under Section 5.2 hereof purchaser had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofof this Agreement. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares Shareholders' Shares are to be sold to the Founder Skandalaris shall be equal to the price per share paid by the third-party transferee(s) purchaser to the Founder Skandalaris in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder shall also reimburse each Eligible Investor for any and all fees and expense, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s rights under Section 5.
(ii) Within thirty (30) 60 days after the later of the dates date on which the Eligible Investor (A) received notice of the Prohibited Transfer or (B) otherwise Shareholders became aware of the Prohibited Transfer, each Eligible Investor the Shareholders shall, if exercising the option created hereby, deliver to the Founder Skandalaris the certificate or certificates representing shares Noble Shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder Skandalaris shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor the Shareholders, pursuant to this Section 55(b), pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(iSection 5(b)(i), in cash immediately available funds or by other means acceptable to the Eligible InvestorShareholders.
(civ) Notwithstanding the foregoing, any attempt by a Founder Skandalaris to transfer Founders Noble Shares in violation of Section 5 hereof 2 of this Agreement shall be void and the Company Noble agrees it will not effect such a transfer nor will it treat any alleged transferee(s) transferee as the holder of such shares, shares without the written consent of two-thirds (2/3) in interest of the Eligible InvestorsShareholders.
Appears in 1 contract
Prohibited Transfers. (a) In the event any Founder a Preferred Holder should sell any Founders Shares Equity Securities in contravention of the co-sale rights of the Investors APS under Section 5 3.2 (a “"Prohibited Transfer”"), the InvestorsAPS, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder Preferred Holder shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Investor APS shall have the right to sell to the Founder Preferred Holder the type and number of shares of Common Stock equal to the number of shares that such Eligible Investor APS would have been entitled to transfer to the third-party transferee(s) under Section 5.2 3.2 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder a Preferred Holder under this subsection (b) shall be equal to the effective price per share of Common Stock (on an as converted basis) paid by the third-party transferee(s) to the Founder Preferred Holder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Preferred Holder shall also reimburse each Eligible Investor APS for any and all fees and expense, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s APS's rights under Section 53.
(ii) Within thirty ninety (3090) days after the later of the dates on which the Eligible Investor APS (A) received notice of the Prohibited Transfer or (B) otherwise became aware of the Prohibited Transfer, each Eligible Investor APS shall, if exercising the option created hereby, deliver to the Founder Preferred Holder the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder Preferred Holder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor APS, pursuant to this Section 5subsection (b), pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(i)subsection (b)(i) above, in cash or by other means acceptable to the Eligible InvestorAPS.
(civ) Notwithstanding Unless and until the foregoingPreferred Holder has fully satisfied its payment and other obligations under this Section3.5(b), (A) any attempt by a Founder Preferred Holder to transfer Founders Shares Equity Securities in violation of Section 5 3 hereof shall be void void, and (B) the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder of such shares, shares without the written consent of two-thirds (2/3) in interest of the Eligible InvestorsAPS.
Appears in 1 contract
Samples: Co Sale Agreement (American Physicians Service Group Inc)
Prohibited Transfers. (a) In the event any Founder a Selling Shareholder should sell any Founders Shares Equity Securities in contravention of the co-sale purchase rights of the Investors Holders under Section 5 4.2 (a “Prohibited Transfer”), the InvestorsHolders, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, below and the Founder such Selling Shareholder shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Investor Holder shall have the right to sell to the Founder such Selling Shareholder the type and number of shares of Common Stock Ordinary Shares or Preferred Shares equal to the number of shares that such Eligible Investor each Holder would have been entitled to transfer to the third-party transferee(s) under Section 5.2 4.2 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof (assuming the Company had not exercised its right of first refusal and no Holders had elected to become Purchasing Holders). Such sale shall be made on the following terms and conditions:
(i1) The price per share at which the shares are to be sold to the Founder such Selling Shareholder shall be equal to the price per share paid by the third-party transferee(s) to the Founder such Selling Shareholder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Selling Shareholder shall also reimburse each Eligible Investor Holder for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible InvestorHolder’s rights under Section 54.
(ii2) Within thirty (30) ninety days after the later of the dates on which the Eligible Investor Holder (A) received notice of the Prohibited Transfer or (B) otherwise became aware of the Prohibited Transfer, each Eligible Investor Holder shall, if exercising the option created hereby, deliver to the Founder such Selling Shareholder the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii3) The Founder Selling Shareholder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor a Holder, pursuant to this Section 54.4, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(iSection 4.4(b)( 1), in cash or by other means acceptable to the Eligible InvestorHolder.
(c4) Notwithstanding the foregoing, any attempt by a Founder such Selling Shareholder to transfer Founders Shares Equity Securities in violation of Section 5 4 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder of such shares, shares without the written consent of two-thirds (2/3) a majority in interest of the Eligible InvestorsHolders.
Appears in 1 contract
Samples: Shareholder Agreements (RDA Microelectronics, Inc.)
Prohibited Transfers. (a) In the event of any Founder should sell purported or actual sale or transfer (including, without limitation, the entering into of any Founders agreement, arrangement or understanding to sell) of Co-Sale Shares by any Principal Shareholder in contravention of the co-sale rights of the Investors under Section 5 LLCP hereunder (a “"Prohibited Transfer”"), the InvestorsLLCP shall have, in addition to such all other rights, powers or remedies as may be available at law, in equity equity, under this Agreement or hereunderany other Investment Document or under Applicable Law, shall have the put option provided right to exercise the Prohibited Transfer Put (as such term is defined below), and the Founder such Principal Shareholder agrees that he or it shall be bound by the applicable provisions hereof, to require the party that entered into such sale or transfer to purchase a number of such optionshares of equity securities of the Company equal to the number of shares of equity securities that LLCP would have been entitled to sell under Section 3.4, had the Prohibited Transfer been effective in accordance and in compliance with the terms of Section 3.1 through Section 3.6.
(b) In the event of any Prohibited Transfer by a Principal Shareholder:
(i) The Company shall, upon the request of LLCP, instruct the Company's transfer agent not to enter such Prohibited Transfer, each Eligible Investor shall have Transfer on the stock ledger or other similar records of the Company; and
(ii) LLCP may exercise a right (the "Prohibited Transfer Put") to sell require such Principal Shareholder to the Founder the type and purchase a number of shares of Common Stock equity securities of the Company equal to the number of shares that such Eligible Investor LLCP would have been entitled to transfer sell to the third-party transferee(s) purchaser under this Section 5.2 hereof 3 had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(iA) The price per share at which the shares are to be sold to the Founder such Principal Shareholder shall be equal to the price per share paid by the third-party transferee(s) purchaser to the Founder such Principal Shareholder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Principal Shareholder shall also reimburse each Eligible Investor LLCP for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s rights under Section 5.
(ii) Within thirty (30) days after the later of the dates on which the Eligible Investor (A) received notice of the Prohibited Transfer or (B) otherwise became aware of the Prohibited Transfer, each Eligible Investor shall, if exercising the option created hereby, deliver to the Founder the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor pursuant to this Section 5, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(i), in cash or by other means acceptable to the Eligible Investor.
(c) Notwithstanding the foregoing, any attempt by a Founder to transfer Founders Shares in violation of Section 5 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder of such shares, without the written consent of two-thirds (2/3) in interest of the Eligible Investors.attorneys,
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Prohibited Transfers. (a) Except as otherwise provided in this Agreement, each Founder will not sell, assign, transfer, pledge, hypothecate, or otherwise encumber or dispose of in any way, all of or any part of or any interest in the Equity Securities. Any sale, assignment, transfer, pledge, hypothecation or other encumbrance or disposition of Equity Securities not made in conformance with this Agreement shall be null and void, shall not be recorded on the books of the Company and shall not be recognized by the Company.
(b) In the event any the Founder should sell any Founders Shares Equity Securities in contravention of the rights of first refusal of the Holders under Section 2.1 (a “Prohibited Transaction”), the Holders shall have the option to purchase from the pledgee, purchaser or transfer e of the Equity Securities transferred in violation of Section 2.1, the number of shares that the Holders would have been entitled to purchase had such Prohibited Transaction been effected in accordance with Section 2.1 hereof, on the following terms and conditions:
(i) the price per share at which the shares are to be purchased by the Holder shall be equal to the price per share paid to such Founder by the third party purchaser or purchasers of such Equity Securities that is subject to the Prohibited Transaction; and
(ii) the Founder effecting such Prohibited Transaction shall reimburse the Holder for any expenses, including legal fees and expenses, incurred in effecting such purchase.
(c) In the event the Founder should sell any Equity Securities in contravention of the co-sale rights of the Investors Holders under Section 5 2.2 (a “Prohibited Transfer”), the InvestorsHolders, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided belowbelow under subsection (d), and the Founder shall be bound by the applicable provisions of such option.
(bd) In the event of a Prohibited Transfer, each Eligible Investor Holder shall have the right to sell to the Founder the type and number of shares of Common Stock Equity Securities equal to the number of shares that such Eligible Investor each Holder would have been entitled to transfer to the third-party transferee(s) under Section 5.2 2.2 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder shall be equal to the price per share paid by the third-party transferee(s) to the Founder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder shall also reimburse each Eligible Investor Holder for any and all fees and expenseexpenses, including reasonable legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible InvestorHolder’s rights under Section 52.2.
(ii) Within thirty ninety (3090) days after the later of the dates on which the Eligible Investor Holder (A) received receives notice of the Prohibited Transfer or (B) otherwise became becomes aware of the Prohibited Transfer, each Eligible Investor Holder shall, if exercising the option created hereby, deliver to the Founder the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor a Holder, pursuant to this Section 52.5, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(i2.5(d)(i), in cash or by other means acceptable to the Eligible InvestorHolder.
(c) Notwithstanding the foregoing, any attempt by a Founder to transfer Founders Shares in violation of Section 5 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder of such shares, without the written consent of two-thirds (2/3) in interest of the Eligible Investors.
Appears in 1 contract
Samples: License Agreement (Inogen Inc)
Prohibited Transfers. (a) In the event any Founder a Holder should sell any Founders Shares in contravention of the co-sale rights of the Investors under Section 5 8.2 above (a “Prohibited Transfer”), ) the InvestorsHolder, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided belowin this Section 8.3, and the Founder such Holder shall be bound by the applicable provisions of such put option.
(b) In the event of a Prohibited Transfer, each Eligible Investor any JHC Management Shareholder or Purchaser shall have the right to sell to the Founder the type and such Holder a number of shares of Common Stock Shares equal to the number of shares Shares that such Eligible Investor JHC Management Shareholder or Purchaser would have been entitled to transfer to the third-party transferee(s) under Section 5.2 hereof had purchaser in the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares Shares are to be sold to the Founder such Holder shall be equal to the price per share share, if any, paid by the third-party transferee(s) purchaser to the Founder such Holder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder shall also reimburse each Eligible Investor for any and all fees and expense, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s rights under Section 5.
(ii) Within thirty a period of sixty (3060) days after the later of the dates on which the Eligible Investor JHC Management Shareholders or Purchasers (Ai) received receive notice from such Holder of the Prohibited Transfer or (Bii) otherwise became become aware of the Prohibited Transfer, each Eligible Investor the JHC Management Shareholders or Purchasers shall, if exercising the put option created hereby, deliver to the Founder such Holder the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer. If the JHC Management Shareholders or Purchasers do not do so within that period, they will have waived irrevocably all rights under this Agreement with respect to that Prohibited Transfer, but not with respect to other Prohibited Transfers.
(iii) The Founder Such Holder shall, upon receipt of the certificate or certificates for the shares Shares to be sold by an Eligible Investor the JHC Management Shareholder or Purchasers pursuant to this Section 58.3, pay to the order of the Purchasers the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified set forth in subparagraph 5.5(b)(iSection 8.3(b)(i), in cash or by other means acceptable to the Eligible Investor.
(civ) Notwithstanding the foregoing, any attempt by a Founder to transfer Founders the Shares in violation of Section 5 hereof this Agreement shall be void void, and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) transferee as the holder of such shares, without the written consent of two-thirds (2/3) in interest of the Eligible InvestorsShares.
Appears in 1 contract
Prohibited Transfers. (a) In the event any Founder Co-Sale Offeror should sell transfer any Founders Shares Securities in contravention of the co-sale rights of the Investors under Section 5 Other Stockholders as set forth in this Article V (a “"Prohibited Transfer”"), to the Investorsextent such transfer is valid ------------------- and recorded on the books of and recognized by the Company, the Other Stockholders, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder such Co-Sale Offeror shall be bound by the applicable provisions of such option. The Other Stockholders may transfer any of their respective shares of Series A Preferred Stock at any time without limitation, so long as the transfer is in compliance with applicable securities laws and, to the extent co-sale rights are to be assigned as part of such transfer, with the provisions of Article IV hereof.
(b) In the event of a Prohibited Transfer, each Eligible Investor Other Stockholder shall have the right to sell to the Founder Co-Sale Offeree the type and number of shares of Common Stock equal to the number of shares that such Eligible Investor each Other Stockholder would have been entitled to transfer to the thirdCo-party transferee(s) under Section 5.2 hereof Sale Offeree above had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder Co-Sale Offeror shall be equal to the price per share paid by the thirdCo-party transferee(s) Sale Offeree to the Founder Co-Sale Offeror in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder shall also reimburse each Eligible Investor for any and all fees and expense, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s rights under Section 5.
(ii) Within thirty within sixty (3060) days after the later of the dates on which the Eligible Investor Other Stockholder (A) received notice of the Prohibited Transfer or (B) otherwise became aware of the Prohibited Transfer, each Eligible Investor Other Stockholder shall, if exercising the option created hereby, deliver to the Founder Co-Sale Offeror the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder Co-Sale Offeror shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor pursuant to this Section 5, Other Stockholder pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(i), in cash or by other means acceptable to the Eligible InvestorOther Stockholder.
(c) Notwithstanding the foregoing, any attempt by a Founder to transfer Founders Shares in violation of Section 5 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder of such shares, without the written consent of two-thirds (2/3) in interest of the Eligible Investors.
Appears in 1 contract
Samples: Stockholders Agreement (Camden Partners Strategic Ii LLC)
Prohibited Transfers. (a) In the event of any Founder should sell sale or transfer (including, without limitation, the entering into of any Founders agreement, arrangement or understanding to sell) of Co-Sale Shares by LLCP or any Principal Shareholder in contravention of the co-sale rights of the Investors any Non-Selling Holder under Section 5 this SECTION 3 (a “Prohibited Transfer”"PROHIBITED TRANSFER"), the InvestorsNon-Selling Holders shall have, in addition to such all other rights, powers or remedies as may be available at law, in equity equity, under this Agreement or hereunderany other Investment Document or under Applicable Law, shall have the put option provided below, and the Founder shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Investor shall have the right (the "PROHIBITED TRANSFER PUT") to sell require the party that entered into such sale or transfer to the Founder the type and purchase a number of shares of Common Stock equal to the number of shares that such Eligible Investor Non-Selling Holder would have been entitled to transfer to the third-party transferee(s) sell under Section 5.2 hereof SECTION 3.4 had the Prohibited Transfer been effected pursuant to in accordance and in compliance with the terms thereof. Such sale shall be made of SECTIONS 3.1 through 3.6.
(b) In the event of any Prohibited Transfer by LLCP or any Principal Shareholder:
(i) The Company shall, upon the request of any Non-Selling Holder, instruct the Company's transfer agent not to enter such Prohibited Transfer on the stock ledger or other similar records of the Company; and
(ii) Each Non-Selling Holder may exercise the Prohibited Transfer Put substantially on the following terms and conditions:
(iA) The price per share at which the shares are to be sold to LLCP or such Principal Shareholder, as the Founder case may be, shall be equal to the price per share paid by the third-party transferee(s) to the Founder purchaser or transferee in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, LLCP or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Principal Shareholder shall also reimburse each Eligible Investor the Non-Selling Holder for any and all fees and expenseexpenses, including legal fees attorneys', accountants' and other expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s such Non-Selling Holder's rights under Section 5.SECTION 3;
(iiB) Within thirty (30) days after the later of the dates on which the Eligible Investor such Non-Selling Holder (Ax) received notice of the Prohibited Transfer or (By) otherwise became aware of the Prohibited Transfer, each Eligible Investor such Non-Selling Holder shall, if exercising the option created herebyProhibited Transfer Put, deliver to the Founder LLCP or such Principal Shareholder the certificate or certificates representing the shares of Common Stock to be soldsold or transferred pursuant to the Prohibited Transfer Put, each certificate to be properly endorsed for transfer.; and
(iiiC) The Founder LLCP or such Principal Shareholder, as the case may be, shall, upon receipt of the certificate or certificates for representing the shares of Common Stock to be sold by an Eligible Investor pursuant to this Section 5such Non-Selling Holder, pay to such Non-Selling Holder the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(iSECTION 3.9(B)(II)(A), by wire transfer in cash or by other means acceptable to the Eligible Investorimmediately available funds.
(c) Notwithstanding the foregoing, any attempt by a Founder to transfer Founders Shares in violation of Section 5 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder of such shares, without the written consent of two-thirds (2/3) in interest of the Eligible Investors.
Appears in 1 contract
Samples: Investor Rights Agreement (Levine Leichtman Capital Partners Ii Lp)
Prohibited Transfers. (a) In the event any a Founder should sell sell, assign or otherwise transfer any Founders Shares in contravention of the co-sale rights of the Investors Shareholders under Section 5 paragraph 2 of this Agreement (a “"Prohibited Transfer”"), the Investors, in addition to such other remedies as may be available at law, in equity or hereunder, Shareholders shall have the put option provided below, and the Founder shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Investor Shareholder, severally, shall have the right to sell to the Founder the type and number of shares of Common Stock (on an as-converted basis) equal to the number of shares that such Eligible Investor Shareholder would have been entitled to transfer sell to the third-party transferee(s) under Section 5.2 hereof purchaser had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofof paragraph 2 hereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the such shares are to be sold to the Founder shall be equal to the price per share paid by the third-party transferee(s) purchaser to the Founder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder shall also reimburse each Eligible Investor for any and all fees and expense, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s rights under Section 5.
(ii) Within thirty (30) 30 days after the later of the dates on which the Eligible Investor Shareholders desiring to sell (the "Selling Shareholders") (A) received notice of the Prohibited Transfer or (B) otherwise became aware of the Prohibited Transfer, each Eligible Investor the Selling Shareholders shall, if exercising the option created hereby, deliver to the Founder the certificate or certificates representing shares to be soldsold under this paragraph 4(b), each certificate to be properly endorsed for transfer.
(iii) The Founder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor pursuant to this Section 5such shares, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(i), in cash or by other means acceptable to the Eligible InvestorSelling Shareholder.
(c) Notwithstanding the foregoing, any attempt by a Founder to transfer Founders Shares in violation of Section 5 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder of such shares, without the written consent of two-thirds (2/3) in interest of the Eligible Investors.
Appears in 1 contract
Prohibited Transfers. (a) In the event any Founder a Key Holder should sell any Founders Key Holders’ Shares in contravention of the co-sale rights of the Investors under Section 5 Subsection 6.2 (a “Prohibited Transfer”), the Investorseach Co-Sale Eligible Key Holder and Co-Sale Eligible Investor, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder such Key Holder shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Co-Sale Eligible Key Holder and Co-Sale Eligible Investor shall have the right to sell to the Founder Key Holder the type and number of shares of Common Stock Key Holders’ Shares equal to the number of shares that such Co-Sale Eligible Key Holder or Co-Sale Eligible Investor would have been entitled to transfer to the third-party transferee(s) under Section 5.2 Subsection 6.2 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder Key Holder shall be equal to the price per share paid by the third-party transferee(s) to the Founder Key Holder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Key Holder shall also reimburse each Co-Sale Eligible Key Holder and Co-Sale Eligible Investor for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the such Co-Sale Eligible Key Holder’s or Co-Sale Eligible Investor’s rights under Section 56.
(ii) Within thirty ninety (3090) days after the later of the dates on which the a Co-Sale Eligible Key Holder or Co-Sale Eligible Investor (A) received receives notice of the Prohibited Transfer or (B) otherwise became becomes aware of the Prohibited Transfer, each such Co-Sale Eligible Key Holder or Co-Sale Eligible Investor shall, if exercising the option created hereby, deliver to the Founder Key Holder the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder Key Holder shall, upon receipt of the certificate or certificates for the shares to be sold by an a Co-Sale Eligible Investor Key Holder or Co-Sale Eligible Investor, pursuant to this Section 5Subsection 6.4, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(iSubsection 6.4(b)(i), in cash or by other means acceptable to the such Co-Sale Eligible Key Holder or Co-Sale Eligible Investor.
(c) . Notwithstanding the foregoing, any attempt by a Founder the Key Holder to transfer Founders Key Holders’ Shares in violation of Section 5 6 hereof shall be void ab initio and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder of such shares, without the written consent of two-thirds (2/3) in interest of the Eligible Investorssuch.
Appears in 1 contract
Prohibited Transfers. (a) In the event that I-Pulse, the Ivanhoe Parties or any Founder should sell of their respective Affiliates, as the Seller, Transfers any Founders Shares Corporation Securities owned beneficially or of record by it in contravention of the co-sale rights of the Investors under Investor Parties set forth in Section 5 2.1 (a “Prohibited Transfer”), the InvestorsInvestor Parties, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder such Seller shall be bound by (or, if such Seller is not I-Pulse or an Ivanhoe Party, I-Pulse or the applicable Ivanhoe Party shall cause such Seller to comply with) the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible the Investor Par ties shall have the right to sell Transfer to such Seller any or all of the Founder Corporation Securities held by the type and number of shares of Common Stock equal to the number of shares that such Eligible Investor would have been entitled to transfer to the third-party transferee(s) under Section 5.2 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofParties. Such sale Transfer shall be made on the following terms and conditions:
: (i) The the price per share at which the shares are to be sold Transferred to the Founder such Seller shall be equal to the price per share paid by the third-party transferee(s) to the Founder Seller in the such Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid ; (Aii) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Seller shall also reimburse each Eligible the Investor Parties for any and all fees and expenseexpenses, including reasonable legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s Investor Parties’ rights under Section 5.
hereunder (iiincluding pursuing all available legal remedies); and (iii) Within thirty within ninety (3090) days after the later of the dates date on which the Eligible Investor (A) Parties received notice of the such Prohibited Transfer or (B) otherwise became aware of the such Prohibited Transfer, each Eligible the Investor Parties shall, if exercising the option created established hereby, deliver to the Founder the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor pursuant to this Section 5, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(iSection 2.1(d), in cash or by other means acceptable to the Eligible InvestorInvestor Parties, deliver to such Seller one or more certificates representing such Corporation Securities duly endorsed for transfer or accompanied by duly completed stock powers.
(c) Notwithstanding the foregoing, any attempt by a Founder to transfer Founders Shares in violation of Section 5 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder of such shares, without the written consent of two-thirds (2/3) in interest of the Eligible Investors.
Appears in 1 contract
Prohibited Transfers. (a) Except as otherwise provided in this Agreement, each Common Holder or Existing Investor will not sell, assign, transfer, pledge, hypothecate or otherwise encumber or dispose of in any way, all of any part of or any interest in the Equity Securities. Any sale, assignment, transfer, pledge, hypothecation or other encumbrance or disposition of Equity Securities not made in conformance with this Agreement shall be null and void, shall not be recorded on the books of the Company and shall not be recognized by the Company.
(b) In the event any Founder a Common Holder or Existing Investor should sell any Founders Shares Equity Securities in contravention of the co-sale rights of the Investors Holders under Section 5 2.2 (a “Prohibited Transfer”), the InvestorsHolders (each, an “Eligible Holder”), in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided belowbelow under subsection (c), and the Founder Common Holder or Existing Investor shall be bound by the applicable provisions of such option.
(bc) In the event of a Prohibited Transfer, each Eligible Investor Holder shall have the right to sell to the Founder Common Holder or Existing Investor the type and number of shares of Common Stock Equity Securities equal to the number of shares that such each Eligible Investor Holder would have been entitled to transfer to the third-party transferee(s) under Section 5.2 2.2 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder Common Holder or Existing Investor shall be equal to the price per share paid by the third-party transferee(s) to the Founder Common Holder or Existing Investor in the Prohibited Transfer. Such price per share shall be paid to the Eligible The Common Holder or Existing Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder shall also reimburse each Eligible Investor Holder for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible InvestorHolder’s rights under Section 52.2.
(ii) Within thirty ninety (3090) days after the later of the dates date on which the Eligible Investor Holder (A) received receives notice of the Prohibited Transfer or (B) otherwise became becomes aware of the Prohibited Transfer, each Eligible Investor Holder shall, if exercising the option created hereby, deliver to the Founder Common Holder or Existing Investor the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder Common Holder or Existing Investor shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor Holder pursuant to this Section 52.5, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(i2.5(c)(i), in cash or by other means acceptable to the Eligible InvestorHolder.
(c) Notwithstanding the foregoing, any attempt by a Founder to transfer Founders Shares in violation of Section 5 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder of such shares, without the written consent of two-thirds (2/3) in interest of the Eligible Investors.
Appears in 1 contract
Samples: First Refusal and Co Sale Agreement (Qlik Technologies Inc)
Prohibited Transfers. (a) In the event any Founder should sell any Founders Shares in contravention of the cotake-sale along rights of the Investors Qualified Stockholders under Section 5 3 (a “"Prohibited Transfer”"), the InvestorsQualified Stockholders, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the such Founder shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Investor Qualified Stockholder shall have the right to sell to the such Founder the type and number of shares of Common Stock the Shares equal to the number of shares that such Eligible Investor each Qualified Stockholder would have been entitled to transfer to the third-party transferee(s) under Section 5.2 3.3 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the such Founder shall be equal to the price per share paid by the third-party transferee(s) to the such Founder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder shall also reimburse each Eligible Investor Qualified Stockholder for any and all fees and expense, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s Qualified Stockholder's rights under Section 53.3.4.
(ii) Within thirty (30) 45 days after the later of the dates on which the Eligible Investor Qualified Stockholder (A) received notice of the Prohibited Transfer or (B) otherwise became aware of the Prohibited Transfer, each Eligible Investor Qualified Stockholder shall, if exercising the option created hereby, deliver to the such Founder the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Such Founder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor a Qualified Stockholder, pursuant to this Section 53.3.4, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(iSection 3.3.4(b)(i), in cash or by other means acceptable to the Eligible Investorsuch Qualified Stockholder.
(civ) Notwithstanding the foregoing, any attempt by a Founder to transfer Founders the Shares in violation of Section 5 hereof this Agreement shall be null and void ab initio and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder owner of such shares, shares without the written consent of two-thirds (2/3) a majority in interest of the Eligible InvestorsQualified Stockholders.
(c) The Qualified Stockholders, severally but not jointly, will indemnify the Company against all liabilities incurred by the Company relating to tax obligations owed by the Company pursuant to the exercise by such Qualified Stockholders of the option set forth in this Section 3.3.4.
Appears in 1 contract
Prohibited Transfers. (a) In the event of any Founder should sell sale or purported sale (including, without limitation, the entering into of any Founders agreement, arrangement or understanding to sell) of Co-Sale Shares by any Principal Shareholder in contravention of the co-sale rights of the Investors under Section 5 LLCP hereunder (a “Prohibited Transfer”"PROHIBITED TRANSFER"), the InvestorsLLCP shall have, in addition to such all other rights, powers or remedies as may be available at law, in equity equity, under this Agreement or hereunderany other Investment Document or under Applicable Law, shall have the put option provided right to exercise the Prohibited Transfer Put (as such term is defined below), and the Founder such Principal Shareholder agrees that he shall be bound by the applicable provisions of such optionhereof.
(b) In the event of a Prohibited TransferTransfer by a Principal Shareholder:
(i) The Company shall, each Eligible Investor shall have upon the request of LLCP, instruct the Company's transfer agent not to enter such Prohibited Transfer on the stock ledger or other similar records of the Company; and
(ii) LLCP may exercise a right (the "PROHIBITED TRANSFER PUT") to sell require such Principal Shareholder to the Founder the type and purchase a number of shares of Common Stock equal to the number of shares that such Eligible Investor LLCP would have been entitled to transfer sell to the third-party transferee(s) purchaser under Section 5.2 hereof SECTION 3.2 had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(iA) The price per share at which the shares are to be sold to the Founder such Principal Shareholder shall be equal to the price per share paid by the third-party transferee(s) purchaser to the Founder such Principal Shareholder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Principal Shareholder shall also reimburse each Eligible Investor LLCP for any and all fees and expenseexpenses, including legal fees attorneys, accountants and other expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s LLCP's rights under Section 5.SECTION 3;
(iiB) Within thirty (30) days after the later of the dates on which the Eligible Investor LLCP (Ax) received notice of the Prohibited Transfer or (By) otherwise became aware of the Prohibited Transfer, each Eligible Investor LLCP shall, if exercising the option created herebyProhibited Transfer Put, deliver to the Founder such Principal Shareholder the certificate or certificates representing the shares to be sold, each certificate to be properly endorsed for transfer.;
(iiiC) The Founder Such Principal Shareholder shall, upon receipt of the certificate or certificates for representing the shares to be sold by an Eligible Investor pursuant to this Section 5LLCP, pay to LLCP the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(iSECTION 3.9(b)(i), by wire transfer in cash or by other means acceptable to the Eligible Investor.immediately available funds; and
(cD) Notwithstanding the foregoing, any attempt by a Founder such Principal Shareholder to transfer Founders any Co-Sale Shares in violation of Section 5 hereof SECTION 3 shall be void and the Company agrees that it will not effect such a transfer nor will it treat any alleged transferee(s) transferee as the holder of such shares, shares without the written consent of two-thirds (2/3) in interest of the Eligible InvestorsLLCP.
Appears in 1 contract
Samples: Investor Rights Agreement (Levine Leichtman Capital Partners Ii Lp)
Prohibited Transfers. (a) In the event any Founder that a Transferor should sell any Founders Shares Co-Sale Stock in contravention of the co-sale rights of the Investors each Purchaser under Section 5 this Agreement (a “"Prohibited Transfer”"), each Purchaser (other than the Investors, Transferor) in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder Transferor shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Investor Purchaser (other than the Transferor) shall have the right to sell to the Founder Transferor the type and number of shares of Common Stock equal to the number of shares that such Eligible Investor each Purchaser would have been entitled to transfer to the third-party transferee(s) purchaser under Section 5.2 5.1(c) hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(ic) The price per share at which the shares are to be sold to the Founder Transferor shall be equal to the price per share paid by the third-party transferee(s) purchaser to the Founder Transferor in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Transferor shall also reimburse each Eligible Investor Purchaser for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s Purchaser's rights under Section 5.this Article V.
(iid) Within thirty ninety (3090) days after the later of the dates on which the Eligible Investor Purchaser (Aa) received notice of the Prohibited Transfer or (Bb) otherwise became aware of the Prohibited Transfer, each Eligible Investor Purchaser shall, if exercising the option created hereby, deliver to the Founder Transferor the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iiie) The Founder Transferor shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor a Purchaser, pursuant to this Section 55.3(e), pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(iSection 5.3(c), in cash or by other means acceptable to the Eligible InvestorPurchaser.
(cf) Notwithstanding the foregoing, any attempt by a Founder the Transferor to transfer Founders Shares Co-Sale Stock in violation of Section 5 5.1 hereof shall be void voidable at the option of a majority in interest of the Purchasers (other than the Transferor) if such Purchasers do not elect to exercise the put option set forth in this Section 5.3, and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) transferee as the holder of such shares, shares without the written consent of two-thirds (2/3) a majority in interest of the Eligible InvestorsPurchasers (other than the Transferor).
Appears in 1 contract
Samples: Investors' Rights Agreement (Coulter Pharmaceuticals Inc)
Prohibited Transfers. (a) In the event any Founder Mandarin should sell any Founders Shares Co-Sale Stock in contravention of the co-sale rights of the Investors Obagi under Section 5 this Agreement (a “"Prohibited Transfer”"), the Investors, Obagi in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder Mandarin shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Investor Obagi shall have the right to sell to the Founder Mandarin the type and number of shares of Common Co-Sale Stock equal to the number of shares that such Eligible Investor Obagi would have been entitled to transfer to the third-party transferee(s) purchaser under Section 5.2 4.1 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder Mandarin shall be equal to the price per share paid by the third-party transferee(s) purchaser to the Founder Mandarin in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder shall also reimburse each Eligible Investor for any and all fees and expense, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s rights under Section 5.
(ii) Within thirty (30) days after the later of the dates on which the Eligible Investor Obagi (A) received notice of the Prohibited Transfer or (B) otherwise became become aware of the Prohibited Transfer, each Eligible Investor Obagi shall, if exercising the option created hereby, deliver to the Founder Mandarin the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder Mandarin shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor Obagi, pursuant to this Section 54.3, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(i)therefor, in cash or by other means acceptable to the Eligible InvestorObagi.
(civ) Notwithstanding the foregoing, any attempt by a Founder Mandarin to transfer Founders Shares Co-Sale Stock in violation of Section 5 4 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) transferee as the holder of such shares, shares without the written consent of two-thirds (2/3) in interest of the Eligible InvestorsObagi.
Appears in 1 contract
Prohibited Transfers. (a) In the event any Founder an Offeree Holder should sell any Restricted Founders Shares in contravention of the co-sale rights of the Investors Preferred Holders under Section 5 5.1 of this Agreement (a “"Prohibited Transfer”"), the Investorseach Preferred Holder, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder Offeree Holder shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Investor Preferred Holder shall have the right to sell to the Founder Offeree Holder the type and number of shares of Common Stock equal to the number of shares that such Eligible Investor each Preferred Holder would have been entitled to transfer to the third-party transferee(s) under Section 5.2 hereof transferee had the Prohibited Transfer under Section 5.1 hereof been effected pursuant to and in compliance with the terms thereofhereof. Such such sale shall be made on the following terms and conditions:.
(i) The price per share at which the shares are to be sold to the Founder Offeree Holder shall be equal to the price per share paid by the third-party transferee(s) transferee to the Founder Offeree Holder in the Prohibited prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Offeree Holder shall also reimburse each Eligible Investor Preferred Holder for any and all fees and expenseexpenses, including legal fees and expenses, expenses incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s Preferred Holder rights under Section 5.5.1
(ii) Within thirty (30) 90 days after the later of the dates on which the Eligible Investor Preferred Holder (A) received receives notice of the Prohibited prohibited Transfer or (B) otherwise became aware of the Prohibited Transfer, each Eligible Investor Preferred Holder shall, if exercising the option created hereby, deliver to the Founder Offeree Holder the certificate or certificates representing shares share to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder Offeree Holder shall, upon receipt of the certificate or certificates for the shares share to be sold by an Eligible Investor a Preferred Holder, pursuant to this Section 55.2(b), pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(iSection 5.2(b)(i), in cash or by other means acceptable to the Eligible InvestorPreferred Holder.
(civ) Notwithstanding the foregoing, any attempt by a Founder an Offeree Holder to transfer Restricted Founders Shares in violation of Section 5 5.1 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) transferee as the holder of such shares, shares without the written consent of two-thirds (2/3) a majority in interest of the Eligible InvestorsPreferred Holders.
Appears in 1 contract
Prohibited Transfers. (aA) In the event any that a Founder should sell any Founders Shares Co-Sale Stock in contravention of the co-sale rights of the Investors each Investor under Section 5 this Agreement (a “"Prohibited Transfer”"), the Investorseach Investor, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the such Founder shall be bound by the applicable provisions of such option.
(bB) In the event of a Prohibited Transfer, each Eligible Investor shall have the right to sell to the such Founder the type and number of shares of Common Stock equal to the number of shares that such Eligible each Investor would have been entitled to transfer to the third-party transferee(s) purchaser under Section 5.2 2(d) hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(iI) The price per share at which the shares are to be sold to the such Founder shall be equal to the price per share paid by the third-party transferee(s) purchaser to the Founder in the such Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder shall also reimburse each Eligible Investor for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s 's rights under Section 52(d).
(iiII) Within thirty ninety (3090) days after the later of the dates on which the Eligible Investor (Aa) received notice of the Prohibited Transfer or (Bb) otherwise became aware of the Prohibited Transfer, each Eligible Investor shall, if exercising the option created hereby, deliver to the Founder the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iiiIII) The Founder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor Investor, pursuant to this Section 54(b), pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(iSection 4(b)(i), in cash or by other means acceptable to the Eligible Investor.
(cC) Notwithstanding the foregoing, any attempt by a Founder to transfer Founders Shares Co- Sale Stock in violation of Section 5 2(b) hereof shall be void voidable at the option of the Company, and any attempt by a Founder to transfer Co-Sale Stock in violation of Sections 2(c) or 2(d) hereof shall be voidable at the option of a majority in interest of the Investors if, with respect to a transfer in violation of Section 2(d), a majority in interest of the Investors does not elect to exercise the put option set forth in this Section 4. The Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) transferee as the holder of such shares, shares without the written consent of two-thirds (2/3) a majority in interest of the Eligible Investors.
Appears in 1 contract
Samples: Right of First Refusal and Co Sale Agreement (Copper Mountain Networks Inc)
Prohibited Transfers. Any sale, assignment, transfer, pledge, hypothecation or other encumbrance or disposition of Equity Securities not made in conformance with this Agreement shall be null and void, shall not be recorded on the books of the Company and shall not be recognized by the Company.
(a) In the event any Founder a Stockholder should sell any Founders Shares Equity Securities in contravention of the co-sale rights of the Investors Holders under Section 5 2.2 (a “Prohibited Transfer”), the InvestorsHolders, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided belowbelow under subsection (b), and the Founder Stockholder shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Investor Holder shall have the right to sell to the Founder Stockholder the type and number of shares of Common Stock Equity Securities equal to the number of shares that such Eligible Investor each Holder would have been entitled to transfer to the third-party transferee(s) under Section 5.2 2.2 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder Stockholder shall be equal to the price per share paid by the third-party transferee(s) to the Founder Stockholder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Stockholder shall also reimburse each Eligible Investor Holder for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible InvestorHolder’s rights under Section 52.2.
(ii) Within thirty ninety (3090) days after the later of the dates date on which the Eligible Investor Holder (A) received receives notice of the Prohibited Transfer or (B) otherwise became becomes aware of the Prohibited Transfer, each Eligible Investor Holder shall, if exercising the option created hereby, deliver to the Founder Stockholder the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder Stockholder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor a Holder pursuant to this Section 52.5, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(i2.5(b)(i), in cash or by other means acceptable to the Eligible InvestorHolder.
(c) Notwithstanding the foregoing, any attempt by a Founder to transfer Founders Shares in violation of Section 5 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder of such shares, without the written consent of two-thirds (2/3) in interest of the Eligible Investors.
Appears in 1 contract
Prohibited Transfers. (aA) In the event any Founder Kanghui Party should sell any Founders Shares Equity Securities in contravention of the co-sale rights of the Investors Holders under Section 5 2.3 (a “Prohibited Transfer”), the InvestorsHolders, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder such Kanghui Party shall be bound by the applicable provisions of such option.
(bB) In the event of a Prohibited Transfer, each Eligible Investor Holder shall have the right to sell to the Founder Kanghui Party the type and number of shares of Common Stock Equity Securities equal to the number of shares that Equity Securities such Eligible Investor Holder would have been entitled to transfer to the third-party transferee(s) under Section 5.2 2.3 hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder Kanghui Party shall be equal to the price per share paid by the third-party transferee(s) to the Founder Kanghui Party in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Kanghui Party shall also reimburse each Eligible Investor Holder for any and all fees and expenseexpenses, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investorsuch Holder’s rights under Section 52.
(ii) Within thirty ninety (3090) days after the later of the dates on which the Eligible Investor Holder (A) received notice of the Prohibited Transfer or (B) otherwise became becomes aware of the Prohibited Transfer, each Eligible Investor such Holder shall, if exercising the option created hereby, deliver to the Founder Kanghui Party the certificate or certificates representing shares to be soldsold under this Section 2.5 by such Holder, each certificate to be properly endorsed for transfer.
(iii) The Founder Kanghui Party shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor a Holder, pursuant to this Section 52.5, pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(iclause (i), in cash or by other means acceptable to the Eligible InvestorHolder.
(civ) Notwithstanding the foregoing, any attempt by a Founder Kanghui Party to transfer Founders Shares Equity Securities in violation of this Section 5 hereof 2 shall be void void, and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) as the holder of such shares, shares without the written consent of two-thirds (2/3) a majority in interest of the Eligible InvestorsHolders.
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Prohibited Transfers. (a) In the event any Founder a Shareholder should sell any Founders Shares Stock in contravention of the co-sale rights of the Investors under Section 5 this agreement (a “"Prohibited Transfer”"), the Investors, in addition to such other remedies as may be available at law, in equity or hereunder, shall have the put option provided below, and the Founder Shareholder shall be bound by the applicable provisions of such option.
(b) In the event of a Prohibited Transfer, each Eligible Investor shall have the right to sell to the Founder Shareholder the type and number of shares of Common Stock equal to the number of shares that such Eligible each Investor would have been entitled to transfer to the third-party transferee(s) purchaser under Section 5.2 2(c) hereof had the Prohibited Transfer been effected pursuant to and in compliance with the terms thereofhereof. Such sale shall be made on the following terms and conditions:
(i) The price per share at which the shares are to be sold to the Founder Shareholder shall be equal to the price per share paid by the third-party transferee(s) purchaser to the Founder Shareholder in the Prohibited Transfer. Such price per share shall be paid to the Eligible Investor in cash if the Founder received cash for his shares. If the Founder did not receive cash but received other property instead, the price per share to be paid to the Eligible Investor shall be paid (A) in the form of the property received by the Founder for his shares, or (B) in cash equal to the fair market value of the property received by such Founder as determined in good faith by the Company’s Board of Directors, at the option of the Eligible Investor. The Founder Shareholder shall also reimburse each Eligible Investor for any and all fees and expense, including legal fees and expenses, incurred pursuant to the exercise or the attempted exercise of the Eligible Investor’s 's rights under Section 52.
(ii) Within thirty ninety (3090) days after the later of the dates on which the Eligible Investor (A) received notice of the Prohibited Transfer or (B) otherwise became become aware of the Prohibited Transfer, each Eligible Investor shall, if exercising the option created hereby, deliver to the Founder Shareholder the certificate or certificates representing shares to be sold, each certificate to be properly endorsed for transfer.
(iii) The Founder Shareholder shall, upon receipt of the certificate or certificates for the shares to be sold by an Eligible Investor Investor, pursuant to this Section 5subparagraph 4(b), pay the aggregate purchase price therefor and the amount of reimbursable fees and expenses, as specified in subparagraph 5.5(b)(i4(b)(i), in cash or by other means acceptable to the Eligible Investor.
(civ) Notwithstanding the foregoing, any attempt by a Founder Shareholder to transfer Founders Shares Stock in violation of Section 5 2 hereof shall be void and the Company agrees it will not effect such a transfer nor will it treat any alleged transferee(s) transferee as the holder of such shares, shares without the written consent of two-thirds (2/3) a majority in interest of the Eligible Investors.
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