Utah 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 Utah Investors' Rights Agreement is a legally binding document that outlines the rights and obligations of Velocity, Inc., existing holders, and founders in regard to investments made in Utah. It serves as a means to protect the interests and provide certain privileges to investors while ensuring transparency and accountability. Under the Utah Investors' Rights Agreement, the existing holders and founders agree to grant certain investor rights to parties who have made significant financial contributions to Velocity, Inc. Some key provisions covered in this agreement include: 1. Voting Rights: The agreement establishes the voting rights of investors, allowing them to participate in corporate decisions that may have a material impact on the company's operations, such as changes to the board of directors or major corporate transactions. 2. Information Rights: Investors are granted access to certain financial and operational information about Velocity, Inc., allowing them to evaluate the company's performance and make informed investment decisions. 3. Registration Rights: The agreement may include provisions that grant investors the right to have their shares registered for resale. This enables investors to freely transfer their shares, subject to certain conditions and regulatory requirements. 4. Anti-Dilution Protection: In some cases, the agreement may provide anti-dilution protection to investors, ensuring that their ownership percentage is not diluted in the event of subsequent financing rounds or the issuance of additional shares. 5. Preemptive Rights: The document may outline the preemptive rights of investors, giving them the opportunity to participate in future fundraising activities to maintain their ownership percentage in Velocity, Inc. 6. Tag-Along Rights: Tag-along rights enable investors to sell their shares along with the founders or existing holders, should they choose to sell their stakes in the company. This provision ensures investors have the opportunity to exit their investment on the same terms and conditions as the majority shareholders. It is important to note that there may be different types or variations of the Utah Investors' Rights Agreement. These could include versions tailored for different stages of financing, such as Seed Investor Rights Agreement, Series A Investor Rights Agreement, or Series B Investor Rights Agreement. Each agreement would typically have specific provisions relevant to the corresponding investment stage. In conclusion, the Utah Investors' Rights Agreement between Velocity, Inc., existing holders, and founders is a comprehensive legal instrument that ensures investor protection, governance, and transparency. It outlines the rights and privileges of investors, allowing them to actively participate in the decision-making processes of the company while safeguarding their financial interests.

The Utah Investors' Rights Agreement is a legally binding document that outlines the rights and obligations of Velocity, Inc., existing holders, and founders in regard to investments made in Utah. It serves as a means to protect the interests and provide certain privileges to investors while ensuring transparency and accountability. Under the Utah Investors' Rights Agreement, the existing holders and founders agree to grant certain investor rights to parties who have made significant financial contributions to Velocity, Inc. Some key provisions covered in this agreement include: 1. Voting Rights: The agreement establishes the voting rights of investors, allowing them to participate in corporate decisions that may have a material impact on the company's operations, such as changes to the board of directors or major corporate transactions. 2. Information Rights: Investors are granted access to certain financial and operational information about Velocity, Inc., allowing them to evaluate the company's performance and make informed investment decisions. 3. Registration Rights: The agreement may include provisions that grant investors the right to have their shares registered for resale. This enables investors to freely transfer their shares, subject to certain conditions and regulatory requirements. 4. Anti-Dilution Protection: In some cases, the agreement may provide anti-dilution protection to investors, ensuring that their ownership percentage is not diluted in the event of subsequent financing rounds or the issuance of additional shares. 5. Preemptive Rights: The document may outline the preemptive rights of investors, giving them the opportunity to participate in future fundraising activities to maintain their ownership percentage in Velocity, Inc. 6. Tag-Along Rights: Tag-along rights enable investors to sell their shares along with the founders or existing holders, should they choose to sell their stakes in the company. This provision ensures investors have the opportunity to exit their investment on the same terms and conditions as the majority shareholders. It is important to note that there may be different types or variations of the Utah Investors' Rights Agreement. These could include versions tailored for different stages of financing, such as Seed Investor Rights Agreement, Series A Investor Rights Agreement, or Series B Investor Rights Agreement. Each agreement would typically have specific provisions relevant to the corresponding investment stage. In conclusion, the Utah Investors' Rights Agreement between Velocity, Inc., existing holders, and founders is a comprehensive legal instrument that ensures investor protection, governance, and transparency. It outlines the rights and privileges of investors, allowing them to actively participate in the decision-making processes of the company while safeguarding their financial interests.