Common use of Permitted Transactions Clause in Contracts

Permitted Transactions. The participation rights in this Section 5 shall not pertain or apply to: (i) Any transfer to a revocable grantor trust with respect to which the Seller and members of his family are the sole beneficiaries; (ii) Any repurchase of Founders Shares by the Company; (iii) Any exercise by the Company of a right or remedy under the terms of any loan, security or stock pledge agreement where the Founders Shares serve as security for a loan made by the Company; (iv) Any transfer to any ancestors or descendants or spouse of a Founder or to a trustee for their benefit or to a custodian for the benefit of a Founders’ issue; or (v) Any bona fide gift; provided, however, that such Founder shall inform the Eligible Investors of such transfer or gift (other than a transfer pursuant to clause (ii) or (iii)) prior to effecting it and the transferee or donee (if other than the Company) shall furnish the Company and the Eligible Investors with a written agreement to be bound by and comply with all applicable provisions of this Agreement.

Permitted Transactions. The participation rights in this Section 5 4 shall not pertain or apply to: (i) Any transfer to a revocable grantor trust with respect to which the Seller Founder and members of his family are the sole beneficiaries; (ii) Any repurchase of Founders Shares by the Company; (iii) Any exercise by the Company of a right or remedy under the terms of any loan, security or stock pledge agreement where the Founders Shares serve as security for a loan made by the Company; (iv) Any transfer to any ancestors or descendants or spouse of a Founder or to a trustee for their benefit or to a custodian for the benefit of a Founders’ issue; or (v) Any bona fide gift; provided, however, that such Founder shall inform the Eligible Investors of such transfer or gift (other than a transfer pursuant to clause (ii) or (iii)) prior to effecting it and the transferee or donee (if other than the Company) shall furnish the Company and the Eligible Investors with a written agreement to be bound by and comply with all applicable provisions of this Agreement.