Examples of Equityholders Agreement in a sentence
Under the Equityholders’ Agreement, the other Strategic Investors had a right of first offer for the shares.
Clearwire’s Nominating Committee appointed the final director.2 The Equityholders’ Agreement required that any merger between Sprint and Clearwire prior to November 28, 2013 receive the approval of a majority of the shares unaffiliated with Sprint.3 With Sprint’s 2.5 GHz holdings added to its own, Clearwire became the largest private holder of wireless spectrum in the United States.
Softbank’s lending syndicate conditioned the loan on Sprint having the right to appoint a majority of the members of the Clearwire Board.12 The Equityholders’ Agreement made this complicated, because it required that one of Sprint’s designees be independent of Sprint.
They also caused Clearwire to amend its certificate of incorporation to incorporate by reference the terms of the Equityholders’ Agreement.
Building on this premise, Sprint argues that the governance provisions in the Equityholders’ Agreement prevented Sprint from exercising effective control over Clearwire and prevented Sprint from owing fiduciary duties.