Oregon 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 Oregon Investors' Rights Agreement is a legal document that outlines the rights and protections of investors who have provided funding to Velocity, Inc., a company based in Oregon. It is a crucial agreement that safeguards the interests of both the existing holders, who already have ownership stakes in the company, and the founders, who are responsible for its initial establishment. The agreement covers various important aspects, such as: 1. Voting Rights: The Oregon Investors' Rights Agreement provides clarification on how voting rights are allocated among the existing holders and founders. It may outline rules regarding majority or super majority voting requirements for important decisions. 2. Information Rights: This agreement ensures that the investors have access to timely and accurate information about Velocity, Inc.'s financial performance, operations, and strategic plans. It sets forth the specifics of the information, such as financial statements and progress reports, that the company must provide to the investors. 3. Transfer Restrictions: The agreement may impose restrictions on the transfer of shares or ownership interests by either the existing holders or the founders. These restrictions ensure that the ownership structure remains stable and that the investors' interests are protected. 4. Preemptive Rights: Preemptive rights give investors the opportunity to maintain their percentage ownership in the company by participating in any future equity offerings or stock sales. The Oregon Investors' Rights Agreement may outline the conditions and procedures for exercising these rights. 5. Co-Sale Agreements: In certain situations, the agreement may include co-sale provisions, also known as tag-along rights. These provisions give the existing holders the right to include their shares in any sale of the founders' shares to ensure that they can sell their holdings at the same terms and conditions. 6. Anti-Dilution Protection: This type of provision protects the investors from potential dilution of their ownership interests if the company issues additional shares at a lower price. It outlines the mechanisms to adjust the investors' ownership percentages. In addition to the standard Oregon Investors' Rights Agreement, there may be different types or variations of the agreement, including the Founders' Investors' Rights Agreement and the Series A Investors' Rights Agreement. These variations can be tailored to specific circumstances or funding rounds, offering additional provisions or adjustments to meet the needs of different investor types or classes of shares. In conclusion, the Oregon Investors' Rights Agreement is a critical document that sets the framework for the relationship between Velocity, Inc., its existing holders, and founders. It protects the rights and interests of all parties involved, ensuring transparency, fair decision-making, and stable ownership structures within the company.

The Oregon Investors' Rights Agreement is a legal document that outlines the rights and protections of investors who have provided funding to Velocity, Inc., a company based in Oregon. It is a crucial agreement that safeguards the interests of both the existing holders, who already have ownership stakes in the company, and the founders, who are responsible for its initial establishment. The agreement covers various important aspects, such as: 1. Voting Rights: The Oregon Investors' Rights Agreement provides clarification on how voting rights are allocated among the existing holders and founders. It may outline rules regarding majority or super majority voting requirements for important decisions. 2. Information Rights: This agreement ensures that the investors have access to timely and accurate information about Velocity, Inc.'s financial performance, operations, and strategic plans. It sets forth the specifics of the information, such as financial statements and progress reports, that the company must provide to the investors. 3. Transfer Restrictions: The agreement may impose restrictions on the transfer of shares or ownership interests by either the existing holders or the founders. These restrictions ensure that the ownership structure remains stable and that the investors' interests are protected. 4. Preemptive Rights: Preemptive rights give investors the opportunity to maintain their percentage ownership in the company by participating in any future equity offerings or stock sales. The Oregon Investors' Rights Agreement may outline the conditions and procedures for exercising these rights. 5. Co-Sale Agreements: In certain situations, the agreement may include co-sale provisions, also known as tag-along rights. These provisions give the existing holders the right to include their shares in any sale of the founders' shares to ensure that they can sell their holdings at the same terms and conditions. 6. Anti-Dilution Protection: This type of provision protects the investors from potential dilution of their ownership interests if the company issues additional shares at a lower price. It outlines the mechanisms to adjust the investors' ownership percentages. In addition to the standard Oregon Investors' Rights Agreement, there may be different types or variations of the agreement, including the Founders' Investors' Rights Agreement and the Series A Investors' Rights Agreement. These variations can be tailored to specific circumstances or funding rounds, offering additional provisions or adjustments to meet the needs of different investor types or classes of shares. In conclusion, the Oregon Investors' Rights Agreement is a critical document that sets the framework for the relationship between Velocity, Inc., its existing holders, and founders. It protects the rights and interests of all parties involved, ensuring transparency, fair decision-making, and stable ownership structures within the company.