{"component": "clause", "props": {"groups": [{"size": 22, "snippet_links": [{"key": "first-refusal-right", "type": "clause", "offset": [4, 23]}, {"key": "article-vi", "type": "definition", "offset": [35, 45]}, {"key": "first-date", "type": "definition", "offset": [121, 131]}, {"key": "shares-of-the-corporation", "type": "clause", "offset": [141, 166]}, {"key": "common-stock", "type": "clause", "offset": [169, 181]}, {"key": "of-record", "type": "definition", "offset": [191, 200]}, {"key": "by-the-corporation", "type": "clause", "offset": [271, 289]}, {"key": "board-of-directors", "type": "definition", "offset": [292, 310]}, {"key": "public-market", "type": "definition", "offset": [318, 331]}, {"key": "outstanding-shares", "type": "definition", "offset": [347, 365]}, {"key": "firm-commitment", "type": "definition", "offset": [412, 427]}, {"key": "underwritten-public-offering", "type": "clause", "offset": [428, 456]}, {"key": "pursuant-to", "type": "definition", "offset": [457, 468]}, {"key": "statement-under", "type": "clause", "offset": [495, 510]}, {"key": "the-1933-act", "type": "clause", "offset": [511, 523]}, {"key": "sale-of-the-corporation", "type": "definition", "offset": [548, 571]}, {"key": "aggregate-amount", "type": "definition", "offset": [594, 610]}, {"key": "market-stand", "type": "clause", "offset": [648, 660]}, {"key": "provisions-of", "type": "clause", "offset": [665, 678]}, {"key": "full-force-and-effect", "type": "definition", "offset": [721, 742]}, {"key": "following-the", "type": "definition", "offset": [743, 756]}], "snippet": "The First Refusal Right under this Article VI shall lapse and cease to have effect upon the earliest to occur of (i) the first date on which shares of the Corporation's Common Stock are held of record by more than five hundred (500) persons, (ii) a determination is made by the Corporation's Board of Directors that a public market exists for the outstanding shares of the Corporation's Common Stock, or (iii) a firm commitment underwritten public offering pursuant to an effective registration statement under the 1933 Act, covering the offer and sale of the Corporation's Common Stock in the aggregate amount of at least $5,000,000. However, the market stand-off provisions of paragraph 4.4 shall continue to remain in full force and effect following the lapse of the First Refusal Right hereunder.", "samples": [{"hash": "f8QejWZsbIU", "uri": "/contracts/f8QejWZsbIU#lapse", "label": "Series F Preferred Stock Purchase Agreement (Digirad Corp)", "score": 18.0, "published": true}, {"hash": "ezBYpfpauRv", "uri": "/contracts/ezBYpfpauRv#lapse", "label": "Restricted Stock Issuance Agreement (Nanogen Inc)", "score": 18.0, "published": true}, {"hash": "14g7y698kRU", "uri": "/contracts/14g7y698kRU#lapse", "label": "Employment Agreement (Combichem Inc)", "score": 18.0, "published": true}], "hash": "a3a84a93b4b3bef42e3f0a8b9129a96c", "id": 2}, {"size": 61, "snippet_links": [{"key": "first-refusal-right", "type": "clause", "offset": [4, 23]}, {"key": "first-date", "type": "definition", "offset": [74, 84]}, {"key": "of-record", "type": "definition", "offset": [130, 139]}, {"key": "by-the-board", "type": "clause", "offset": [207, 219]}, {"key": "public-market", "type": "definition", "offset": [227, 240]}, {"key": "outstanding-shares-of-common-stock", "type": "clause", "offset": [256, 290]}, {"key": "firm-commitment", "type": "definition", "offset": [302, 317]}, {"key": "underwritten-public-offering", "type": "clause", "offset": [318, 346]}, {"key": "pursuant-to", "type": "definition", "offset": [348, 359]}, {"key": "statement-under", "type": "clause", "offset": [386, 401]}, {"key": "the-1933-act", "type": "clause", "offset": [402, 414]}, {"key": "sale-of-the-common-stock", "type": "clause", "offset": [439, 463]}, {"key": "aggregate-amount", "type": "definition", "offset": [471, 487]}, {"key": "market-stand", "type": "clause", "offset": [551, 563]}, {"key": "full-force-and-effect", "type": "definition", "offset": [596, 617]}, {"key": "following-the", "type": "definition", "offset": [618, 631]}], "snippet": "The First Refusal Right shall lapse upon the earliest to occur of (i) the first date on which shares of the Common Stock are held of record by more than five hundred (500) persons, (ii) a determination made by the Board that a public market exists for the outstanding shares of Common Stock or (iii) a firm commitment underwritten public offering, pursuant to an effective registration statement under the 1933 Act, covering the offer and sale of the Common Stock in the aggregate amount of at least twenty million dollars ($20,000,000). However, the Market Stand-Off shall continue to remain in full force and effect following the lapse of the First Refusal Right.", "samples": [{"hash": "b8h2Y3so3V0", "uri": "/contracts/b8h2Y3so3V0#lapse", "label": "Stock Issuance Agreement (Veritone, Inc.)", "score": 26.200548172, "published": true}, {"hash": "9HYnyRNSUtz", "uri": "/contracts/9HYnyRNSUtz#lapse", "label": "Stock Purchase Agreement (Amyris Biotechnologies Inc)", "score": 21.2874736786, "published": true}, {"hash": "6itUZsQAflq", "uri": "/contracts/6itUZsQAflq#lapse", "label": "Strategic Advisory Services Agreement (Amyris Biotechnologies Inc)", "score": 21.2874736786, "published": true}], "hash": "e9d8f9ec68b426d1773a0f2d77d6435d", "id": 1}, {"size": 20, "snippet_links": [{"key": "special-purchase-right", "type": "definition", "offset": [4, 26]}, {"key": "article-viii", "type": "clause", "offset": [38, 50]}, {"key": "first-date", "type": "definition", "offset": [125, 135]}, {"key": "first-refusal-right", "type": 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However, the Market Stand-Off shall continue to remain in full force and effect following the lapse of the First Refusal Right, including in the case of a transaction described in (i) above.", "samples": [{"hash": "liKOySQ5bcx", "uri": "/contracts/liKOySQ5bcx#lapse", "label": "Stock Purchase Agreement (NeuroSigma, Inc.)", "score": 23.6488704681, "published": true}, {"hash": "41CLcDzHr1x", "uri": "/contracts/41CLcDzHr1x#lapse", "label": "Stock Purchase Agreement (NeuroSigma, Inc.)", "score": 23.1204662323, "published": true}], "hash": "444372bef1681d57fcf84d2b1986f27c", "id": 5}, {"size": 5, "snippet_links": [{"key": "first-refusal-right", "type": "clause", "offset": [4, 23]}, {"key": "initial-public-offering", "type": "clause", "offset": [72, 95]}, {"key": "the-acquisition", "type": "clause", "offset": [104, 119]}, {"key": "corporation-by", "type": "definition", "offset": [127, 141]}, {"key": "stock-exchange", "type": "definition", "offset": [172, 186]}, {"key": "market-stand", "type": "clause", "offset": [201, 213]}, {"key": "full-force-and-effect", "type": "definition", "offset": [246, 267]}, {"key": "following-the", "type": "definition", "offset": [268, 281]}, {"key": "in-the-case", "type": "clause", "offset": [326, 337]}], "snippet": "The First Refusal Right shall lapse upon the earlier to occur of (i) an Initial Public Offering or (ii) the acquisition of the Corporation by an entity that is traded on a stock exchange. However, the Market Stand-Off shall continue to remain in full force and effect following the lapse of the First Refusal Right, including in the case of a transaction described in (i) above.", "samples": [{"hash": "lPfVRWjuiic", "uri": "/contracts/lPfVRWjuiic#lapse", "label": "Stock Issuance Agreement (NeuroSigma, Inc.)", "score": 25.6488704681, "published": true}, {"hash": "7mpCSyRlmbQ", "uri": "/contracts/7mpCSyRlmbQ#lapse", "label": "Stock Issuance Agreement (NeuroSigma, Inc.)", "score": 25.6488704681, "published": true}, {"hash": "3rSQdKynrit", "uri": "/contracts/3rSQdKynrit#lapse", "label": "Stock Issuance Agreement (NeuroSigma, Inc.)", "score": 25.6488704681, "published": true}], "hash": "bcbb0f20ccc90e009a9c92c19d8d7abb", "id": 6}, {"size": 4, "snippet_links": [{"key": "supplemental-agreement", "type": "definition", "offset": [5, 27]}, {"key": "force-and-effect", "type": "clause", "offset": [57, 73]}, {"key": "the-conditions", "type": "clause", "offset": [77, 91]}, {"key": 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First Refusal"], ["marital-dissolution-or-legal-separation", "Marital Dissolution or Legal Separation"], ["confidentiality-of-agreement-terms", "CONFIDENTIALITY OF AGREEMENT TERMS"], ["exclusive", "Exclusive"], ["additional-restrictions-on-transfers-of-securities-held-by-management-investors", "Additional Restrictions on Transfers of Securities Held by Management Investors"]], "title": "Lapse", "id": "lapse", "related": [["lapse-of-restrictions", "Lapse of Restrictions", "<strong>Lapse</strong> of Restrictions"], ["lapse-of-forfeiture-restrictions", "Lapse of Forfeiture Restrictions", "<strong>Lapse</strong> of Forfeiture Restrictions"], ["forfeiture-restrictions", "Forfeiture Restrictions", "Forfeiture Restrictions"], ["expiration-of-restrictions-and-risk-of-forfeiture", "Expiration of Restrictions and Risk of Forfeiture", "Expiration of Restrictions and Risk of Forfeiture"], ["termination-of-restrictions", "Termination of Restrictions", "Termination of Restrictions"]], "related_snippets": [], "updated": "2026-01-22T05:43:19+00:00", "also_ask": ["What are the strategic advantages or disadvantages of including a lapse clause in this agreement?", "Which essential elements must be drafted into a lapse clause to ensure clarity and enforceability?", "What are the most common risks or pitfalls associated with poorly drafted lapse clauses?", "How do lapse clauses in this jurisdiction compare to those in other key legal systems?", "What standards do courts apply to determine the enforceability of a lapse clause in litigation?"], "drafting_tip": "Specify the conditions triggering lapse to prevent uncertainty; set clear timelines to ensure enforceability; define consequences of lapse to avoid disputes.", "explanation": "The LAPSE clause defines the conditions under which an agreement, offer, or right automatically expires or becomes void without further action by either party. Typically, this clause specifies a set period after which the relevant document or right is no longer valid, such as an offer that lapses if not accepted within 30 days. Its core practical function is to provide certainty and finality by ensuring that obligations or opportunities do not remain open indefinitely, thereby reducing ambiguity and potential disputes over timing."}, "json": true, "cursor": ""}}