Colorado Investors' Rights Agreement between Telocity, Inc., Existing Holders, and Founders

• Category: Corporations - Public - Rights
• State: Multi-State
• 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 Colorado Investors' Rights Agreement is a legally binding document that outlines the rights and responsibilities of the investors, existing holders, and founders of Velocity, Inc., a Colorado-based company. This agreement plays a crucial role in protecting the interests of the investors and ensuring transparency and fairness in the company's operations. Under the Colorado Investors' Rights Agreement, key provisions are defined to safeguard the investors' investments and give them certain rights and protections. These provisions can include, but are not limited to: 1. Anti-dilution rights: The agreement may grant the investors' protection against dilution of their ownership stake in the company. In case of future equity issuance sat a lower valuation, the investors are entitled to receive additional shares or compensation to maintain their proportional ownership. 2. Information rights: The investors have the right to receive regular updates and financial statements about the company's performance and operations. This ensures transparency and allows investors to make informed decisions regarding their investments. 3. Board representation: The Investors' Rights Agreement may grant certain investors the right to appoint one or more representatives to the company's board of directors. This enables the investors to actively participate in strategic decision-making and protect their interests. 4. Preemptive rights: This provision allows the investors to maintain their percentage ownership by providing them the first opportunity to purchase additional securities issued by the company before they are offered to third parties. 5. Drag-along rights: In certain circumstances, such as during a sale or merger of the company, the agreement may allow a majority of investors to force the remaining shareholders, including the founders and existing holders, to sell their shares on the same terms and conditions. 6. Tag-along rights: Conversely, tag-along rights enable the investors to participate in a sale transaction initiated by the founders or existing holders. If the company is being sold to a third party, the investors have the right to include their shares in the transaction on the same terms and conditions as the founders and existing holders. It is important to mention that there may be specific variations or additional provisions within Colorado Investors' Rights Agreements, depending on the specific circumstances and negotiations between the parties involved. However, the mentioned provisions encompass some fundamental aspects typically covered in such agreements.

The Colorado Investors' Rights Agreement is a legally binding document that outlines the rights and responsibilities of the investors, existing holders, and founders of Velocity, Inc., a Colorado-based company. This agreement plays a crucial role in protecting the interests of the investors and ensuring transparency and fairness in the company's operations. Under the Colorado Investors' Rights Agreement, key provisions are defined to safeguard the investors' investments and give them certain rights and protections. These provisions can include, but are not limited to: 1. Anti-dilution rights: The agreement may grant the investors' protection against dilution of their ownership stake in the company. In case of future equity issuance sat a lower valuation, the investors are entitled to receive additional shares or compensation to maintain their proportional ownership. 2. Information rights: The investors have the right to receive regular updates and financial statements about the company's performance and operations. This ensures transparency and allows investors to make informed decisions regarding their investments. 3. Board representation: The Investors' Rights Agreement may grant certain investors the right to appoint one or more representatives to the company's board of directors. This enables the investors to actively participate in strategic decision-making and protect their interests. 4. Preemptive rights: This provision allows the investors to maintain their percentage ownership by providing them the first opportunity to purchase additional securities issued by the company before they are offered to third parties. 5. Drag-along rights: In certain circumstances, such as during a sale or merger of the company, the agreement may allow a majority of investors to force the remaining shareholders, including the founders and existing holders, to sell their shares on the same terms and conditions. 6. Tag-along rights: Conversely, tag-along rights enable the investors to participate in a sale transaction initiated by the founders or existing holders. If the company is being sold to a third party, the investors have the right to include their shares in the transaction on the same terms and conditions as the founders and existing holders. It is important to mention that there may be specific variations or additional provisions within Colorado Investors' Rights Agreements, depending on the specific circumstances and negotiations between the parties involved. However, the mentioned provisions encompass some fundamental aspects typically covered in such agreements.