2000 Put Right Clause Samples
The 2000 Put Right clause grants a party, typically an investor, the right to require another party, such as a company or its founders, to repurchase a specified number of shares at a predetermined price after a certain date or upon the occurrence of specific events. In practice, this means that if certain milestones are not met or if an exit event does not occur by the year 2000, the investor can exercise this right to sell their shares back and recover their investment. The core function of this clause is to provide investors with a guaranteed exit strategy and to mitigate the risk of being unable to liquidate their holdings if the company does not achieve expected growth or liquidity events within a set timeframe.
2000 Put Right. (a) 2000 Put Right. At any time during the period commencing on October 31, 2000 and ending on November 15, 2000 (the "2000 Put Period"), each Holder shall have the right (the "2000 Put Right") to require that RSI purchase up to [__%][percentage to be equal to (i) the amount by which the total dollar value of the Common Stock held by all Holders immediately following the Closing exceeds $100 million, divided by (ii) the total dollar value of the Common Stock held by all Holders immediately following the Closing] of the Common Stock owned by such Holder, for a price per share equal to the 2000 Put Price (as defined below). The "2000 Put Price" of each share of Common Stock to be sold pursuant to the 2000 Put Right shall be the greater of: (i) the Fair Market Value (as defined below) of such Common Stock, determined in accordance with the procedures set forth Section 7.4; (ii) the Consideration (as defined in the U.S. Stock Purchase Agreement, subject to future adjustment in the event of stock splits, stock dividends and similar events); or (iii) the highest price per share of Common Stock (or the implied value of the Common Stock in connection with the issuance of any convertible security of the Company) (subject to future adjustment in the event of stock splits, stock dividends and similar events) received by RSI or the Company in any sale or issuance thereof from and after the date hereof through the last day of the 2000 Put Period. Each Holder electing to exercise the 2000 Put Right (a "2000 Put Exercising Holder") shall exercise such right by a written notice (the "2000 Put Notice") delivered to RSI and the Company during the 2000 Put Period.
2000 Put Right. At any time during the period commencing on October 31, 2000 and ending on November 15, 2000 (the “2000 Put Period”), each Holder shall have the right (the “2000 Put Right”) to require that RSI purchase up to 16.67 % of the Common Stock owned by such Holder, for a price per share equal to the 2000 Put Price (as defined below). The “2000 Put Price” of each share of Common Stock to be sold pursuant to the 2000 Put Right shall be the greater of: (i) the Fair Market Value (as defined below) of such Common Stock, determined in accordance with the procedures set forth Section 7.4; (ii) the Consideration (as defined in the U.S. Stock Purchase Agreement, subject to future adjustment in the event of stock splits, stock dividends and similar events); or (iii) the highest price per share of Common Stock (or the implied value of the Common Stock in connection with the issuance of any convertible security of the Company) (subject to future adjustment in the event of stock splits, stock dividends and other similar events) received by RSI or the Company in any sale or issuance thereof (i) in connection with the transactions contemplated by the Merger Agreement or (ii) from and after the date hereof through the last day of the 2000 Put Period but in no event less than $ per share.