Leak Out definition

Leak Out has the meaning set out in Section 4.6;

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Leak Out shall have the meaning set forth in Section 8(k).

Leak Out. The Company has informed the Holders that it may be seeking additional funding, and that the requested “leak out” provisions set forth herein will benefit the Company and its shareholders generally by improving the Company’s prospects of obtaining such funding. The Company has further informed the Holders that it anticipates effecting a reverse split of its Common Stock in a range of not less than 100:1 and not greater than 800:1, with such ratio to be determined at the sole discretion of the Company’s Board of Directors (the “Reverse Split”). In consideration of the foregoing, and effective upon the Closing and the receipt of the Payoff Amount by Holders’ counsel hereunder, for a period of time beginning on the date of such Closing and ending 365 days thereafter, the Holders jointly and severally agree to not, directly or indirectly, sell, convey, assign, pledge or otherwise transfer any shares of Common Stock currently owned by the Holders except that, following the earlier of (i) the date that is 60 days after the Closing Date and (ii) the effectuation of the Reverse Split, the Holders may sell such aggregate number of shares of Common Stock per week as shall not exceed 25,000 shares (giving effect to an assumed post Reverse Split ratio of 200:1)(or such other amount as may be equitably adjusted to reflect the actual split ratio if different from 200:1 or the non-occurrence of the Reverse Split); provided, that, nothing herein shall prevent a Holder from conveying or otherwise transferring the Common Stock to an affiliate of such Holder if such affiliate confirms, in writing, to the Company its obligations to comply with the restrictions set forth herein. The Holders agree to the delivery of the Company’s transfer agent stop-transfer instructions reasonably necessary to prevent transfers of the Common Stock except as in compliance with the restrictions set forth herein.

Examples of Leak Out in a sentence

• The Buyer’s sale of the Common Stock issued upon exercise of the Warrant, on each respective Trading Day (as defined in the Note) (each a “Trading Day”) during the Leak Out Period (as defined in this Agreement), shall be limited to the greater of (i) a gross dollar amount of $15,000.00 or (ii) 20% of the Daily Dollar Volume (as defined in this Agreement) on the respective Trading Day.

• During the Leak Out Period, the Company will not be permitted to reverse split its common shares and the Company will have the first right of refusal to purchase the Pleasant Kids Parties Leak Out Percentage for a 20 percent discount to market based on the highest trading price of the Common stock over the 10 trading days prior to the Rights Notice, during the first 10 days of every month prior to selling to the market.

• To enforce the Lock-up and Leak Out, the Company may impose stop-transfer instructions with respect to the Shares until the end of the Lock-up and Leak Out period.

• The Buyer’s sale of the Common Stock issued upon conversion of the Note and exercise of the Warrant, on each respective Trading Day (as defined in the Note) (each a “Trading Day”) during the Leak Out Period (as defined in this Agreement), shall be limited to the greater of (i) a gross dollar amount of $3,500.00 or (ii) 20% of the Daily Dollar Volume (as defined in this Agreement) on the respective Trading Day.

• The Buyer’s sale of the Common Stock issued upon conversion of the Note and exercise of the Warrants, on each respective Trading Day (as defined in the Note) (each a “Trading Day”) during the Leak Out Period (as defined in this Agreement), shall be limited to the greater of (i) a gross dollar amount of $5,000.00 or (ii) 15% of the Daily Dollar Volume (as defined in this Agreement) on the respective Trading Day.

• The Buyer’s sale of the Commitment Shares and Conversion Shares, on each respective Trading Day during the Leak Out Period (as defined in this Agreement), shall be limited to the greater of (i) a gross dollar amount of $2,500.00 or (ii) 15% of the Daily Dollar Volume (as defined in this Agreement) on the respective Trading Day.

• Further, the Company shall enforce any of the Leak Out Provisions at the direction of the Representative.

• The Purchaser hereby executes and enters into the Seller’s separate Lock Up and Leak Out Agreement governing the sale and transfer of the Shares, such Lock Up and Leak Out Agreement being incorporated by reference in its entirety herein as executed by the Purchaser.

• The sale of the Shares by the Seller to the Purchaser is conditional upon the delivery of the executed Lock Up and Leak Out Agreement by the Purchaser to the Seller.

• The Holder acknowledges that its Common Stock acquired through the Exchange Agreement may be subject to Lock Up Agreements and / or Leak Out Agreements required during the IPO process, and Holder agrees to execute such Lock Up Agreements and / or Leak Out Agreements as required by the Company or its underwriters as part of the IPO process.

More Definitions of Leak Out

Leak Out. Agreements. At Closing, Millennium shall deliver to X-Net agreements from each person who owns 20,000 shares or more of Millennium's common stock, agreeing that unless otherwise agreed to by Millennium, during the two year period following the Closing Date, they will not publicly sell more than 5% of their holdings in any single calendar month, and that any purchaser of shares from such persons in private transactions will agree to be bound by the same restriction.