Common use of Shareholding Lock-In Clause in Contracts

Shareholding Lock-In. The Preferred Bidder/Consortium, as a whole, shall hold a minimum of 51% of the paid-up equity share capital of the Concessionaire at all times during a period that shall not be less than 5 Years from date of signing of Agreement or 3 Years from COD whichever is later (“Lock-in Period”). In case of Preferred Bidder being a Consortium, the Lead Member (M/s_XXXX) of the Consortium shall be required to commit to hold a minimum equity stake not less than 26% in the Project SPC and the other constituent member of the Consortium, shall be required to commit to individually hold minimum 10% of equity in the Project SPC at all times during the lock-in period. No change in composition of the Preferred Bidder/Consortium shall be made Lock-in Period. Any transfer of such share capital after the Lock-in period shall require the prior written approval of the Authority, which shall not be unreasonably denied. Provided, nothing contained in this sub-section shall preclude or prevent pledge of the Preferred Bidder’s/Consortium’s shares in the Concessionaire in favour of Lenders as security for the Financial Assistance and enforcement thereof in accordance with this Agreement and/or the Financing Documents. After the expiry of the Lock-In Period, the Lead Member or other constituent member of the Consortium (whose experience and or the financial capacities have been taken in to consideration for the purposes of the evaluation of the Bid of the Preferred Bidder) may be replaced by another entity, provided that the substitute entity holds at least 26% of the paid-up equity share capital of the Concessionaire. For the avoidance of doubt, the lead member or other constituent member of the Consortium (whose experience and or the financial capacities have been taken in to consideration for the purposes of the evaluation of the Bid of the Preferred Bidder) shall, at all times, during the Concession Period, hold at least 26% of the paid up equity share capital of the Concessionaire.