Common use of Tag-Along Rights Clause in Contracts

Tag-Along Rights. (a) If the Sponsor proposes to transfer all or a portion of the shares of Common Stock beneficially owned by it to a Third Party which would not be an Affiliate of the Sponsor immediately upon consummation of such transfer, and the Sponsor does not exercise its Drag-Along Rights in accordance with Section 7.4 (a “Tag-Along Sale”), the Sponsor shall cause you and your Permitted Transferees to have the option to exercise your rights under this Section 7.1, provided, however, that you and your Permitted Transferees, if any, shall have no rights under this Section 7.1 if the shares of Common Stock to be transferred in such transaction and any shares of Common Stock which have been transferred to any Third Party within a 90-day period preceding the date of such transfer have, in the aggregate, a Fair Market Value less than ten million dollars ($10,000,000) (a “Small Transfer”), and provided, further, that when the cumulative Fair Market Value of all such Small Transfers, the value to be calculated at the time of each such transfer, exceeds fifty million dollars ($50,000,000), the restrictions provided for in the first proviso of this Section 7.1(a) shall no longer be in effect. Moreover, you and your Permitted Transferees, if any, shall have no rights under this Section 7.1 with respect to any transfer by the Sponsor of any shares of Common Stock beneficially owned by it to any limited partner of the Sponsor.

Appears in 21 contracts

Samples: Restricted Stock Agreement (Vertis Inc), Restricted Stock Agreement (Vertis Inc), Restricted Stock Agreement (Vertis Inc)

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Tag-Along Rights. (a) If the Sponsor proposes to transfer Transfer all or a portion of the shares of Common Stock beneficially owned by it to a Third Party which would not be an Affiliate of the Sponsor immediately upon consummation of such transferTransfer, and the Sponsor does not exercise its Drag-Along Rights in accordance with Section 7.4 (a “Tag-Along Sale”), the Sponsor shall cause you the Executive and your the Executive’s Permitted Transferees to have the option to exercise your its rights under this Section 7.1, provided, however, that you the Executive and your the Executive’s Permitted Transferees, if any, shall have no rights under this Section 7.1 if the shares of Common Stock to be transferred Transferred in such transaction and any shares of Common Stock which have been transferred Transferred to any Third Party within a 90-day period preceding the date of such transfer Transfer have, in the aggregate, a Fair Market Value less than ten million dollars ($10,000,000) (a “Small Transfer”), and provided, further, that when the cumulative Fair Market Value of all such Small Transfers, the value to be calculated at the time of each such transferTransfer, exceeds fifty million dollars ($50,000,000), the restrictions provided for in the first proviso of this Section 7.1(a) shall no longer be in effect. Moreover, you the Executive and your the Executive’s Permitted Transferees, if any, shall have no rights under this Section 7.1 with respect to any transfer Transfer by the Sponsor of any shares of Common Stock beneficially owned by it to any limited partner of the Sponsor.

Appears in 2 contracts

Samples: Management Subscription Agreement (Vertis Inc), Management Subscription Agreement (Vertis Inc)

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