The First Redemption Clause Samples
The First Redemption clause establishes the terms and conditions under which an initial redemption of securities or interests can occur. Typically, this clause specifies the timing, process, and any limitations or requirements for the first opportunity an investor or holder has to redeem their holdings, such as minimum notice periods or eligibility criteria. Its core practical function is to provide clarity and predictability for both parties regarding when and how the first redemption can take place, thereby reducing uncertainty and managing expectations around liquidity events.
The First Redemption. On the date hereof immediately after the effectiveness of the New Lazard Group Operating Agreement, LAZ-MD shall effect the First Redemption by redeeming the LAZ-MD Redeemable Interests in full in exchange for the Lazard Group Redeemable Interests pursuant to, and in accordance with, the LAZ-MD Operating Agreement and the New Lazard Operating Agreement and the Transaction Agreement.