Put Right and Exchange and Issuance of Class B Common Stock Sample Clauses
The "Put Right and Exchange and Issuance of Class B Common Stock" clause defines the rights of certain shareholders to require the company to repurchase their shares (put right), to exchange their shares for another class of stock, or to receive newly issued Class B common stock under specified conditions. Typically, this clause outlines the procedures, timing, and pricing mechanisms for exercising these rights, such as allowing investors to sell their shares back to the company at a predetermined price or to convert their holdings into a different class of equity. Its core practical function is to provide liquidity and flexibility to shareholders, ensuring they have options to exit or adjust their investment, and to clarify the process for issuing or exchanging shares, thereby reducing uncertainty and potential disputes.
Put Right and Exchange and Issuance of Class B Common Stock. ▇. ▇▇▇▇▇ of Put Right. Effective immediately following the Effective Time, and subject to the terms and provisions of this Agreement (including Section 1.2(a) below), the Company hereby irrevocably grants to Founder the right (the “Put Right”) to require the Company to exchange any shares of Class A Common Stock that Founder acquires following the Effective Time as a result of the exercise of his Founder Equity Award (each, a “Put Eligible Share”) for a number of shares of Class B Common Stock of equivalent value as determined on the date of the exchange (which is expected to be on a one share-for-one share basis), subject to the terms and conditions set forth in this Agreement (the “Exchange”).
Put Right and Exchange and Issuance of Class B Common Stock