Lockup Agreement

(redirected from Lock-Up Agreement)

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.
References in periodicals archive ?
A lock-up agreement in the share acquisition context refers to a contract between a prospective takeover bidder and shareholders of the target corporation, pursuant to which the bidder undertakes to launch a takeover bid at a price no lower than an amount specified in the contract.
Pink Sheets:UNQT) CEO Michael Anthony has added his recently-purchased 50 million shares of company common stock to his existing lock-up agreement.
Pink Sheets:UNQT) has scheduled an execution date of June 1, 2005 for the lock-up agreement that will prohibit CEO Michael Anthony from selling any of his company stock on the open market.
Today, nineteen more shareholders express their confidence in the development of the Company, and add-up their shares to the lock-up agreement, bringing the number of shares of the common stock of the company, subjected to the lock-up agreement to 2,930,920, as of today.
Nasdaq:APTI), a leading supplier of high performance power semiconductors used in the conditioning and control of electrical power, today announced that the company's six executive officers have signed a voluntary extended lock-up agreement with each other covering all the shares they own and options they have been granted representing approximately 4.
The new agreement extends the period of time during which their shares will be locked up by six months, and supercedes the original lock-up agreement with SG Cowen Securities, Inc.
The new agreement extends the original lock-up agreement with Thomas Weisel Partners, the lead underwriter of the Company's July 2000 initial public offering.
Philip also announced that it has entered into an amended lock-up agreement with its syndicated lenders.
Monday announced that it has executed a lock-up agreement with its syndicated lenders.
today announced that it will continue to delay the announcement of its 1998 year-end financial results and the filing of its annual report on Form 10-K with the Securities and Exchange Commission pending the execution of a lock-up agreement with the Company's lending syndicate.
As previously announced, Philip Services has reached an agreement on the terms of a lock-up agreement with the Steering Committee of its lenders.
LONDON: British investors have called upon investment banks to stick closer to lock-up agreements on sales of company shares after a major transaction, saying it would ensure more stable markets.