Size ESigning Registration Rights Agreement For Free

If the seller complies with Rule 144, the sale will not violate the registration requirements of the Securities Act. Rule 144 imposes certain holding period, informational, volume, manner of sale and notice obligations in certain situations and for certain stockholders.

A registration right is a right entitling an investor who owns restricted stock to require that a company list the shares publicly so that the investor can sell them. Registration rights, if exercised, can force a privately-held company to become a publicly-traded company.

Rule 144 provides an exemption and permits the public resale of restricted or control securities if a number of conditions are met, including how long the securities are held, the way in which they are sold, and the amount that can be sold at any one time.

1 Rule 144 provides a safe harbor from registration for resales of ?restricted? securities and resales of securities by an issuer's affiliates, frequently referred to as ?control? securities. 2 Rule 145 establishes limitations on the resale of securities acquired by certain persons in business combination transactions.

Notice of proposed sale requirement All affiliates are required to file a Form 144, notifying the SEC if the sale of securities within any three-month period exceeds either 5,000 shares or a total dollar amount of $50,000.

In an unregistered securities offering, an agreement between the issuer and the purchasers of the security that creates an obligation for the issuer to register the re-offer and resale of the securities being offered at some time in the future (usually within six months).