Contra Costa California Investors' Rights Agreement between Telocity, Inc., Existing Holders, and Founders

• Category: Corporations - Public - Rights
• State: Multi-State
• County: Contra Costa
• Control #: US-EG-9103
• Format: Word; Rich Text

Description

Second Amended and Restated Investment Rights Agreement of Telocity, Inc. dated December 13, 1999. 36 pages The Contra Costa California Investors' Rights Agreement is a legally binding document that outlines the rights and obligations of Velocity, Inc., existing holders, and founders. It is designed to protect the interests and investments of both parties involved in the agreement. This agreement ensures that investors have certain rights and privileges, such as information rights, registration rights, and participation rights. The agreement guarantees that the existing holders and founders provide investors with timely and accurate information about the company's financial performance, operations, and other key aspects. This transparency enables investors to make well-informed decisions regarding their investments. The different types of Contra Costa California Investors' Rights Agreement between Velocity, Inc., existing holders, and founders include: 1. Information Rights: This section of the agreement ensures that investors have access to relevant information about the company's financials, business plans, future prospects, and any material events that may impact their investments. It requires Velocity, Inc., founders, and existing holders to provide regular updates to the investors, typically on a quarterly basis. 2. Registration Rights: This section grants investors the right to request the registration of their shares with the Securities and Exchange Commission (SEC). This allows them to sell their shares in a public market, which provides liquidity and a potential exit strategy for their investments. The agreement specifies the procedures and requirements for exercising these registration rights. 3. Participation Rights: This section entitles investors to participate in future fundraising rounds to maintain their ownership percentage in the company. It ensures that investors have the opportunity to invest in subsequent financing rounds before new investors, helping them protect their initial investment and maintain their influence and control over the company. 4. Anti-Dilution Rights: This clause protects investors from dilution of their ownership stake in the company if Velocity, Inc. issues additional shares at a lower price than the original investment price. It provides mechanisms such as price-based anti-dilution adjustments or weighted average adjustments, which aim to maintain the economic value of the investor's shares. 5. Miscellaneous Provisions: This section covers other important aspects of the agreement, including dispute resolution, amendment and waiver rights, confidentiality, and governing law. It ensures that the agreement remains valid and enforceable and specifies how any conflicts or disagreements will be resolved. 6. Drag-Along Rights: In certain circumstances, this clause enables majority shareholders or founders of Velocity, Inc. to enforce the sale of the company to a third party. This provision allows the majority shareholders to "drag along" minority shareholders to facilitate a sale or liquidity event for the company. The Contra Costa California Investors' Rights Agreement is essential for establishing a clear framework of rights and responsibilities between Velocity, Inc., existing holders, and founders. It helps foster trust and transparency while providing necessary protection to the investors' interests.

The Contra Costa California Investors' Rights Agreement is a legally binding document that outlines the rights and obligations of Velocity, Inc., existing holders, and founders. It is designed to protect the interests and investments of both parties involved in the agreement. This agreement ensures that investors have certain rights and privileges, such as information rights, registration rights, and participation rights. The agreement guarantees that the existing holders and founders provide investors with timely and accurate information about the company's financial performance, operations, and other key aspects. This transparency enables investors to make well-informed decisions regarding their investments. The different types of Contra Costa California Investors' Rights Agreement between Velocity, Inc., existing holders, and founders include: 1. Information Rights: This section of the agreement ensures that investors have access to relevant information about the company's financials, business plans, future prospects, and any material events that may impact their investments. It requires Velocity, Inc., founders, and existing holders to provide regular updates to the investors, typically on a quarterly basis. 2. Registration Rights: This section grants investors the right to request the registration of their shares with the Securities and Exchange Commission (SEC). This allows them to sell their shares in a public market, which provides liquidity and a potential exit strategy for their investments. The agreement specifies the procedures and requirements for exercising these registration rights. 3. Participation Rights: This section entitles investors to participate in future fundraising rounds to maintain their ownership percentage in the company. It ensures that investors have the opportunity to invest in subsequent financing rounds before new investors, helping them protect their initial investment and maintain their influence and control over the company. 4. Anti-Dilution Rights: This clause protects investors from dilution of their ownership stake in the company if Velocity, Inc. issues additional shares at a lower price than the original investment price. It provides mechanisms such as price-based anti-dilution adjustments or weighted average adjustments, which aim to maintain the economic value of the investor's shares. 5. Miscellaneous Provisions: This section covers other important aspects of the agreement, including dispute resolution, amendment and waiver rights, confidentiality, and governing law. It ensures that the agreement remains valid and enforceable and specifies how any conflicts or disagreements will be resolved. 6. Drag-Along Rights: In certain circumstances, this clause enables majority shareholders or founders of Velocity, Inc. to enforce the sale of the company to a third party. This provision allows the majority shareholders to "drag along" minority shareholders to facilitate a sale or liquidity event for the company. The Contra Costa California Investors' Rights Agreement is essential for establishing a clear framework of rights and responsibilities between Velocity, Inc., existing holders, and founders. It helps foster trust and transparency while providing necessary protection to the investors' interests.