No Exit Obligation Clause Samples
The No Exit Obligation clause establishes that a party is not required to facilitate or participate in an exit event, such as a sale, transfer, or buyout of their interest in a business or agreement. In practice, this means that the party cannot be compelled to sell their shares, transfer their rights, or otherwise divest their position at the request of other parties or due to certain triggering events. This clause is commonly used to protect minority stakeholders or founders from being forced out of a venture. Its core function is to provide security and continuity for the party’s ongoing involvement, preventing unwanted or premature exits and ensuring stability within the business relationship.
No Exit Obligation. If the Purchaser first engages in, enters into, participates in, or invests in any of the businesses at a time when it is not prohibited from doing so pursuant to the other provisions of this Section 9.9(a), the Purchaser shall be permitted to continue to engage or participate in such businesses notwithstanding any such prohibition arising after such time, including as a result of subsequent changes to the scope of the Seller Business.
No Exit Obligation. If JD Finance first engages in, enters into, participates in, or invests in any of the businesses at a time when it is not prohibited from doing so pursuant to the other provisions of this Section 10.7(a) , JD Finance shall be permitted to continue to engage or participate in such businesses notwithstanding any such prohibition arising after such time, including as a result of subsequent changes to the scope of the JD Group Business.