Lock-Up Clause Example from Business Contracts

Lock-Up. (a) Subject to Section 3 below, during the Lock-Up Period, the Holder agrees that it, he or she will not offer, sell, contract to sell, pledge or otherwise dispose of, directly or indirectly, any of the Lock-Up Shares (as defined herein), enter into a transaction that would have the same effect, or enter into any swap, hedge or other arrangement that transfers, in whole or in part, any of the economic consequences of ownership of the Lock-Up Shares or otherwise, publicly disclose the intention t...o make any offer, sale, pledge or disposition, or to enter into any transaction, swap, hedge or other arrangement, or engage in any Short Sales (as defined below) with respect to the Lock-Up Shares (any of the foregoing, a "Prohibited Transfer"). (b) In furtherance of the foregoing, during the Lock-Up Period, the Company will (i) place a stop order on all the Lock-Up Shares, including those which may be covered by a registration statement, and (ii) notify the Company's transfer agent in writing of the stop order and the restrictions on the Lock-Up Shares under this Agreement and direct the Company's transfer agent not to process any attempts by the Holder to resell or transfer any Lock-Up Shares, except in compliance with this Agreement. (c) For purposes hereof, "Short Sales" include all "short sales" as defined in Rule 200 promulgated under Regulation SHO under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and all types of direct and indirect stock pledges, forward sale contracts, options, puts, calls, swaps and similar arrangements (including on a total return basis), and sales and other transactions through non-US broker dealers or foreign regulated brokers. (d) The term "Lock-Up Period" means the date from the Closing until the earlier of (i) two years after the date of the Closing and (ii) the date on which the closing price of the Company Shares exceeds USD $12.50 for any 20 trading days within a 30-trading day period following the one-year anniversary of the Closing (as adjusted for stock splits, stock dividends, reorganizations and recapitalizations). (e) For purposes of this Agreement, "Lock-Up Shares" means Company Shares held by the Holder at the Effective Time. View More