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Lockup Agreement
(redirected from Lock Up Agreement)

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Lockup Agreement
Where the purchaser of securities agrees not to sell the securities for a certain period of time (the lockup time).

Lockup Agreement
1. See: Crown jewel lockup agreement.

2. During an IPO, a contract prohibiting executives, underwriters, and/or venture capitalists from selling their shares in the company for a certain period of time. The period of time is usually about six months, but may be longer or shorter. A lockup agreement exists to reduce the pressure for volatility as the company goes through its first few months of public trade.

lockup agreement
A contractual offer of valuable assets or stock made by a takeover target to the suitor deemed most acceptable to management. A lockup agreement tends to discourage unwanted suitors, but it may penalize the target firm's stockholders because it eliminates counteroffers. Also called crown jewel lockup agreement.


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substantially in accordance with the terms and conditions set forth" in the draft lock up agreements and in the draft acquisition agreement between FMC and Linedata.
 
 
 
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