We have agreed with the underwriters that we will not (i) offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, make any short sale or otherwise transfer or dispose of, directly or indirectly, or submit to, or file with, the Securities and Exchange Commission a registration statement under the Securities Act relating to, any shares of our common stock or any securities convertible into or exercisable or exchangeable for our common stock, or publicly disclose the intention to make any offer, sale, pledge, disposition, submission or filing, or (ii) enter into any swap or other agreement that transfers, in whole or in part, any of the economic consequences of ownership of common stock or any such other securities, whether any such transaction described in clause (i) or (ii) above is to be settled by delivery of shares of common stock or such other securities, in cash or otherwise, without the prior written consent of Goldman Sachs & Co. LLC and Evercore Group L.L.C. (the “representatives”) for a period of 45 days after the date of this prospectus supplement (such period, the “restricted period”).
The restrictions on our actions, as described above, do not apply to (i) the shares to be sold hereunder, (ii) any shares of common stock issued upon the exercise of any option or warrant, or the vesting of restricted stock units or the conversion or exchange of a security outstanding on the date of the underwriting agreement, (iii) pursuant to our stock-based compensation plans, (iv) the establishment of a trading plan pursuant to Rule 10b5-1 under the Exchange Act during the restricted period, provided that such plan does not provide for the transfer of shares of common stock during the restricted period and the establishment of such plan does not require or otherwise result in any public filing or other public announcement of such plan during the restricted period, (v) shares of common stock to be issued to one or more counterparties in connection with a bona fide commercial relationship (including joint ventures, marketing or distribution arrangements, collaboration agreements or intellectual property license agreements) or any acquisition of assets or not less than a majority or controlling portion of the equity of another entity, provided, that (A) the aggregate number of shares of common stock issued under this subsection (v) shall not exceed 7.5% of the number of shares of common stock outstanding as of the date of this prospectus supplement (prior to giving effect to this offering), and (B) prior to such issuance, each recipient of such shares under this subsection (v) shall execute and deliver to the representatives a lock-up agreement (as described below), and (vi) the filing of any registration statement on Form S-8 or a successor form thereto relating to the shares of common stock granted pursuant to or reserved for issuance under our stock-based compensation plans.
Our directors and executive officers (such persons, the “lock-up parties”) have entered into lock-up agreements with the underwriters prior to the commencement of this offering pursuant to which each lock-up party, with limited exceptions, for the restricted period, may not, without the prior written consent of the representatives (i) offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of, directly or indirectly, any of shares of common stock or any securities convertible into or exercisable or exchangeable for common stock (collectively, the “lock-up securities”), or publicly disclose the intention to make any offer, sale, pledge or disposition, (ii) enter into any swap or other agreement that transfers, in whole or in part, any of the economic consequences of ownership of the lock-up securities, whether any such transaction described in (i) or (ii) above is to be settled by delivery of lock-up securities, in cash or otherwise, (iii) publicly disclose to the intention to do any of the foregoing or (iv) make any demand for or exercise any right with respect to the registration of any lock-up securities. Steven Rales, one of our current stockholders, is not entering into any lock-up agreement with the underwriters.
The restrictions described in the immediately preceding paragraph and contained in the lock-up agreements between the underwriters and the lock-up parties do not apply, subject in certain cases to various conditions, to certain transactions, including (i) transfers of lock-up securities as bona fide gifts, including, in the case of the chairman of our board of directors only, the planned transfer to charitable organizations or charitable trusts with respect to up to $2.5 million in shares of common stock in the aggregate, (ii) dispositions to any trust for the direct or indirect benefit of the lock-up party and/or his or her immediate family, (iii) dispositions of shares of common stock to any corporation, partnership, limited liability company or other entity all of the beneficial ownership interests of which are held by the lock-up party and/or his or her immediate family, (iv) dispositions
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