IPO Lock-Up Period Clause Samples
An IPO Lock-Up Period clause restricts certain shareholders, typically company insiders or early investors, from selling their shares for a specified period following a company's initial public offering (IPO). This period often lasts 90 to 180 days and is designed to prevent a sudden influx of shares into the market, which could negatively impact the stock price. By temporarily limiting share sales, the clause helps stabilize the market for the newly public company's stock and reassures new investors about the company's value.
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IPO Lock-Up Period as may be requested by the managing underwriter; provided, that such lock-up agreements are also required from all directors and executive officers and from all Shareholders who hold at least five percent (5%) of the Registrable Securities; provided, further, that each such director, executive officer or Shareholder referenced in the foregoing proviso, shall enter into such lock-up agreements if so required. Notwithstanding the foregoing, this Section 4.04 shall not apply to any sale by a Shareholder or a director or officer of a Shareholder of Equity Securities acquired in open market transactions or block purchases by such Shareholder or its Affiliates subsequent to the IPO or with respect to any Rule 10b5-1 sale program approved by the Board for the benefit of any director or officer of the Company. Any discretionary waiver or reduction of the requirements under the foregoing provisions made by the Company or the applicable lead managing underwriters shall apply to each Shareholder on a pro rata basis.