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LSDefine

Simple English definitions for legal terms

lockup option

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A quick definition of lockup option:

Lockup Option: A way for a company to protect itself from being taken over by another company. If someone buys a certain amount of the company's shares, a friendly party can buy parts of the company for a set price. This is sometimes not allowed if it doesn't help the shareholders. Lockup is short for lockup option.

A more thorough explanation:

A lockup option is a defense mechanism used by a corporation to prevent a hostile takeover. It involves an agreement between the corporation and a friendly party, where the friendly party is given the option to purchase parts of the corporation at a set price if a person or group acquires a certain percentage of the corporation's shares.

For example, let's say Company A is worried about a hostile takeover from Company B. Company A enters into a lockup option agreement with Company C, a friendly party. The agreement states that if Company B acquires more than 50% of Company A's shares, Company C has the option to purchase 10% of Company A's shares at a set price.

Lockup options can be controversial because they may not always serve the best interests of the shareholders. However, they can be an effective way for a corporation to protect itself from a hostile takeover.

lockup | loco parentis

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THATS SO FUNNY
i cant i would go crazy
JumpySubsequentDolphin
20:50
i need to know who decided to do that.
JumpySubsequentDolphin
20:50
omg im on a plane weeeee
the devil
youre on a plane??? LSD made the mile high club??
20:50
yo splitterus are you in school already
20:50
it says ur c/o 2027
JumpySubsequentDolphin
20:51
@SplitterusClitterus: HAHAH yes
ur user is hilarioussss and no i just graduated this may and am now applying ---also im out of messages so ill take a lil
20:52
roger dat. see u in heck
im back, r u applying this cycle too
JumpySubsequentDolphin
21:32
this child fell asleep on me
JumpySubsequentDolphin
21:32
im so uncomfortable
just push him off the entire seat
JumpySubsequentDolphin
21:34
LMAOOOO
JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
AHHAHAHAHAHAHHAHAHAHAHAHAH
@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
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