Stockholder Protection Rights Agreement: Definition, Example
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What is a Stockholder Protection Rights Agreement?
A stockholder protection rights agreement is a contract between a company and stockholder that determines the rights of the stockholder. This agreement typically provides that stockholders are permitted to vote on company matters, receive dividends, and sell or transfer their shares. The agreement may also establish how stockholders will be compensated in the event that the company is sold or liquidated.
A stockholder protection rights agreement can help to ensure that stockholders are treated fairly and have a voice in decisions about the company. This type of agreement can also provide some stability for a company by ensuring that stockholders cannot suddenly sell their shares and destabilize the business.
Stockholder Protection Rights Agreement Sample
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The term "Expiration Time" shall be amended to read as follows:
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| 2. | Terms not otherwise defined herein shall have the meanings ascribed to them in the Stockholder Protection Rights Agreement, dated as of March 21, 2011. |
| 3. | This Agreement may be executed in counterparts and by each party hereto on a separate counterpart, both of which when so executed shall be deemed to be an original and both of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement by facsimile or e-mail transmission shall be effective as delivery of a manually executed counterpart of this agreement. |
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GSE SYSTEMS, INC.
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By: /s/ Lawrence M. Gordon
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Name: Lawrence M. Gordon
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Title: Senior Vice President
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and General Counsel
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CONTINENTAL STOCK TRANSFER &
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TRUST COMPANY, as Rights Agent
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By: /s/ Margaret Villani
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Name: Margaret Villani
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Title: Vice President
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Reference:
Security Exchange Commission - Edgar Database, EX-10.2 3 exh10-2.htm AMENDMENT NO. 1 TO STOCKHOLDER PROTECTION RIGHTS AGREEMENT, Viewed October 12, 2022, View Source on SEC.
Who Helps With Stockholder Protection Rights Agreements?
Lawyers with backgrounds working on stockholder protection rights agreements work with clients to help. Do you need help with a stockholder protection rights agreement?
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