Investor Presentaiton
Pre-IPO equity investment (cont'd)
PERMISSIBILITY OF SPECIAL RIGHTS/OBLIGATIONS (cont'd)
Right of First Refusal and Tag-along Rights - Allowed: A right granted to the pre-IPO investor
to purchase the shares at the same price and on the same terms as a proposed sale of shares
to a third party purchaser, or, if the pre-IPO investor does not purchase the shares, the right
granted to it to include its shares for sale together (i.e. tag along) with the shares of the
controlling shareholder
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Qualified IPOs Allowed: Term providing for pre-IPO investor to receive compensation if
applicant does not achieve IPO at or above a specified amount by a set date. This term will be
allowed IF the amount to be compensated is set out in the investment agreement or can be
derived from the compensation provisions under the agreement. Otherwise, it will be viewed
as an amendment or variation to the original terms of the agreement and the 28 Day/180 Day
Requirement applies.
CHARLTONS
易周律师行
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