Lockup Agreement

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Related to Lock-up: Lock-up period, 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 ?
The lock-ups are meant to reassure investors buying into a share sale that the seller will not dump more of their stake on the market shortly afterwards, driving down the share price.
While the Delaware courts cleared the way for lock-up creep, its
132) In addition, the rise of the go-shop and its spread to outside private equity transactions may be seen as a way to deal with lock-up creep, though if that is the case, it begs the question of why they are used principally in private equity and not strategic deals.
that each year the lock-up will expire in respect of 20% of the acquired number
It is merely reflecting the price for other lock-ups in that location.
Yesterday, a team of officers inspected 20 lock-ups in Pinefield Industrial Estate in Elgin.
POLICE last night began searching lock-up garages as the hunt for missing mum Arlene Fraser was stepped up.
Of the 29,286,754 shares issued and outstanding, approximately 15,652,000 are held by DOBI Medical's directors and executive officers as well as certain other significant stockholders who previously agreed to lock-up arrangements.
The lock-up owner believes developers could turn the building into mews houses by adding an upper floor and slate roofs.
Rather, it is intended to allow Aether's significant shareholders the opportunity to sell shares in an orderly manner, and to extend the lock-up period to five months after the completion of the offering.
The lock-up effectively extends previous lock-ups entered into by Akamai's top management, venture capital investors who are principal stockholders and its directors.
At a time when world is observing Human Rights Day, parents in the disputed region are busy thinking how to get their wards out of police lock-ups, he said.