Put Options/Maximization of Value Clause Samples
The Put Options/Maximization of Value clause grants a party, typically an investor or minority shareholder, the right to require the company or other shareholders to purchase their shares at a predetermined price or under specified conditions. In practice, this clause may be triggered if certain performance targets are not met, or upon the occurrence of specific events such as a change of control or failure to achieve an exit within a set timeframe. Its core function is to provide an exit mechanism and protect the value of the holder’s investment, ensuring they have a way to realize the value of their shares even if the company does not achieve anticipated liquidity events.
Put Options/Maximization of Value. In the first sentence of Section 11.1, after “Joint Venture” add “(being 12.5% of the entire Joint Venture)”.
Put Options/Maximization of Value. 11.1 Put Options in Favor of Roy’s Roy’s shall have the right to require Outback to purchase up to 25% of Roy’s interests in the Joint Venture at anytime after the 5th anniversary of the effective date hereof. Additionally, at anytime after the 10th anniversary of the effective date hereof, Roy’s shall have the right to require Outback to purchase up to another 25% (total 50%) of Roy’s interests in the Joint Venture. The percentage interest in the entire Joint Venture being sold under these put options is referred to herein as the “Put Percentage”. The purchase price to be paid by Outback shall be equal to the fair market value of the Joint Venture as of the date Roy’s exercises its put option, multiplied by the Put Percentage.