Lockup 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.
References in periodicals archive ?
the profit from the lockup is greater than the profit from the original
However, in response to the request for dismissal, the Judge Andre Bouchard said, "It is reasonably conceivable that the benefit the director defendants received in the lockup restructuring was not entirely fair.
8220;I am excited to have a fun and interesting opportunity to give back to those in need through the 2013 New Bern Lockup.
Besides drawing lockup and overkill, ZWCAD+ 2012 SP1 has developed other useful express tools such as Scale List and Mvsetup to further increase its industrial applicability.
In this paper, we intend to test two hypotheses for IPO corporate insider sales shortly following lockup expiration.
The company shortened the lockup period for certain employees, so 234 million shares will now be available for sale on October 29, instead of November 14.
The mayor said he would love to see Ashburnham, Athol, Gardner, Hubbardston, Phillipston, Royalston, Templeton, Westminster and Winchendon be part of the regional dispatch center and possibly also use the regional lockup.
After promising nearby residents that only misdemeanor cases would be handled at the courthouse, court officials decided in 2003 to transfer felony trials to other courthouses, allowing the lockup facility to be closed and saving the cash-strapped court system $1 million annually.
This type of lockup has been used on other revolvers as well, namely, Astra, Llama, Rossi, and a large number of the older Taurus revolvers.
With its dual-disc lockup clutch assembly and improved forged-steel billet cover surface, the heavy-duty BBTC offers improved torque capacity.
And when he was put in the Concord lockup, he was happy to walk free after a single night, when a friend paid his tax for him.
MWO 9-2320-272-20-7, which still has not been applied to some vehicles in the fleet, installed a brake proportioning valve kit to prevent front-wheel lockup during heavy braking when driving on slick surfaces with little or no load on-board.