The Repurchase Right Clause Samples
The Repurchase Right clause grants one party, typically the issuer or company, the option to buy back shares or assets from another party under specified conditions. This right may be triggered by events such as an employee leaving the company, a breach of contract, or the passage of a certain period. By establishing clear terms for when and how repurchase can occur, the clause helps the company maintain control over its ownership structure and prevents unwanted parties from holding shares, thereby protecting the company’s interests and ensuring stability.
The Repurchase Right. Upon the termination of a Participant’s service as a director, officer, consultant or employee of the Company and its Subsidiaries for any reason, all Shares issued (before or after termination of service) pursuant to exercise of the Option (the “Option Shares”), whether held by the Participant or one or more of his transferees, will, prior to an initial public offering by the Company of the Shares, be subject to repurchase by the Company at its election pursuant to the terms and conditions set forth in this Section 7 (the “Repurchase Right”).
The Repurchase Right. Upon the termination of Participant’s service as an employee, officer or director of the Company, an Affiliate, or a Subsidiary for any reason, all Options Shares (including, without limitation, Option Shares issued upon exercise of Options and Option Shares issuable upon exercise of outstanding Vested Options), whether held by Participant or one or more of Participant’s transferees, will be subject to repurchase by the Company at its election pursuant to the terms and conditions set forth in this Section 6 (the “Repurchase Right”).
The Repurchase Right. Upon the termination of the Director’s service as a director of the Company and its Subsidiaries for any reason, all Shares issued pursuant to exercise of the Option (the “Option Shares”) will, prior to an initial public offering by the Company of the Shares, be subject to repurchase by the Company at its election, subject to the Participant’s prior written consent, pursuant to the terms and conditions set forth in this Section 6 (the “Repurchase Right”).