Equity Strip definition
Examples of Equity Strip in a sentence
In the event of your death or Disability, you (or in the event of your death, your Beneficiary) will retain the Equity Strip which will vest immediately upon the occurrence of your death or Disability in the manner provided by the Stock Award Agreement, and the Option will continue to remain outstanding to the extent provided in the Option Agreement.
In the event you desire to make the Election, you must notify the Company in writing of your intention to make the Election within five business days following your receipt of the Company Notice and surrender to the Company for cancellation any stock certificates held by you in connection with the Equity Strip.
The Loan will be on a full recourse basis and secured in accordance with the terms of the Security Agreement (attached hereto as Exhibit D) by (i) the Equity Strip, (ii) the Option and (iii) the shares acquired upon exercise of the Option.
All rights you hold or may in the future hold with respect to the Equity Strip and the Option will continue in effect in accordance with the original terms thereof.
The grant of the Equity Strip is expressly conditioned upon your signing the Stock Award Agreement and your agreement to be bound by the terms thereof.
Share certificates for the shares of Common Stock and Preferred Stock subject to the Equity Strip will be issued in the name of the Executive but will be held by Holdings until such time as the Executive makes a valid disposition of such shares in accordance with the terms and provisions set forth herein and in the Stockholders Agreement and Security Agreement.
The Executive will enjoy full ownership rights in connection with the Equity Strip, including voting rights and the right to receive dividends when declared and paid.
As a condition precedent to the award of the Equity Strip and the grant of the Options, you must become a party to the Stockholders Agreement and agree to be bound by the terms and conditions of the Stockholders Agreement.
Prior to an IPO, each holder of the Equity Strip shall be obligated to sell a pro rata portion of its securities in the event that GEI III sells a significant portion of its interest in the Holding Company.
Except as permitted by the Stockholders Agreement, the shares subject to the Equity Strip may not be transferred by the Executive until such time as they have vested in accordance with the provisions of Section 3 above.