Lock Up Paper For Free

A lock-up period is a window of time when investors are not allowed to redeem or sell shares of a particular investment.Hedge fund lock-ups are typically 30-90 days, giving the hedge fund manager time to exit investments without driving prices against their overall portfolio.

In consideration of Holder's compliance with the covenants set forth in Article VIII, the Company hereby agrees to pay to Holder, or its designee, a fee in the amount of ($ ), representing two percent (2.0%) of the aggregate principal amount of the Sold Notes (the Lock-Up Fee).

Lockup agreements prohibit company insidersincluding employees, their friends and family, and venture capitalistsfrom selling their shares for a set period of time.The terms of lockup agreements may vary, but most prevent insiders from selling their shares for 180 days.

At the end of the lock-up period, there is a permanent drop in the stock price in the range of 1.15 3.29 , with a corresponding 38 increase in the volume of shares traded.

The lockup period prevents individuals who already hold shares in the company, whether it be as an early investor or as an employee of the company, from flooding the market with shares.This sudden increase in the supply of shares available to trade can push the stock lower.

During the IPO lock-up company insiders and early investors cannot sell their shares, helping to ensure an orderly IPO and not flood the market with additional shares for sale. Lock-up periods usually last between 90 to 180 days. Once the lock-up period ends, most trading restrictions are removed.

The shareholders that are subject to lockup usually include the management and directors of the company, strategic partners and such large investors. These shareholders have typically invested prior to the IPO at a significantly lower price to that offered to the public and therefore stand to gain considerable profits.