Common use of Termination of Designation Rights Clause in Contracts

Termination of Designation Rights. The Holders of a majority of the Shares shall not be entitled to designate any nominees for election to the Board pursuant to this Agreement from and after the date (the “Designation Rights Termination Date”) that is the first date on which the Shares Beneficially Owned by the Holders collectively represent less than thirty-one and one-quarter percent (31.25%) of the Shares initially acquired by the Investor pursuant to the Asset Purchase Agreement.

Termination of Designation Rights. The Holders of a majority of the Shares Investors shall not be entitled to designate any nominees for election to the Board pursuant to this Agreement from and after the date (the “Designation Rights Termination Date”) that is the first date on which the Shares Beneficially Owned by the Holders Investors collectively represent less than thirty-one and one-quarter twenty percent (31.2520%) of the Shares initially acquired by the Investor Investors pursuant to the Asset Stock Purchase Agreement.