Common use of Mandatory Transfers Clause in Contracts

Mandatory Transfers. Subject to Section 7.1, if RGB and LEG shall determine to sell all, but not less than all, of their Shares pursuant to the terms of an "arm's length", bona fide, independent third party offer (the "Offer"), the other Stockholders shall, upon the joint written request of such Stockholders (the "Drag-Along Request"), tender all of their Shares to such third party offeror on the same terms and at the same price per share as set forth in the Offer. If the other Stockholders fail to so tender their Shares within five (5) business days of the Drag-Along Request, such Shares shall be deemed so tendered, and the Corporation shall have the right to transfer them accordingly on its books.

Appears in 2 contracts

Sources: Stockholders' Agreement (Laidlaw Energy Group, Inc.), Stockholders' Agreement (Laidlaw Energy Group, Inc.)