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lock-up agreements do not contain any pre-established conditions to the waiver by Stifel, Nicolaus & Company, Incorporated and JMP Securities LLC on behalf of the underwriters of any
terms of the lock-up agreements. Any determination to release shares subject to the lock-up agreements would be based on a number of factors at the time of determination, including but not necessarily
limited to the market price of the common stock, the liquidity of the trading market for the common stock, general market conditions, the number of shares proposed to be sold, contractual obligations
to release certain shares subject to the lock-up agreements in the event any such shares are released, subject to certain specific limitations and thresholds, and the timing, purpose and terms of the
the lock-up periods set forth in the agreements described above, and assuming that the representatives of the underwriters do not release any parties from these agreements, all
of the shares of our common stock that are restricted securities or are held by our affiliates as of the date of this prospectus will be eligible for sale in the public market in compliance with
Rule 144 under the Securities Act.
addition to the restrictions contained in the lock-up agreements described above, we have entered into agreements with certain of our security holders, including our amended and
restated investors rights agreement and our standard forms of option agreements under our equity incentive plan, that contain market stand-off provisions imposing restrictions on the ability of such
security holders to offer, sell or transfer our equity securities for a period of 180 days following the date of this prospectus.
In general, persons who have beneficially owned restricted shares of our common stock for at least six months, and any affiliate of the
Company who owns either restricted shares of our common stock, are entitled to sell their securities without registration with the SEC under an exemption from registration provided by Rule 144
under the Securities Act.
Any person who is not deemed to have been one of our affiliates at the time of, or at any time during the three months preceding, a
sale may sell an unlimited number of restricted securities under Rule 144 if:
- the restricted securities have been held for at least six months, including the holding period of any prior owner other
than one of our affiliates;
- we have been subject to the Exchange Act periodic reporting requirements for at least 90 days before the sale; and
- we are current in our Exchange Act reporting at the time of sale.
person who is not deemed to have been an affiliate of ours at the time of, or at any time during the three months preceding, a sale and has held the restricted securities for at
least one year, including the holding period of any prior owner other than one of our affiliates, will be entitled to sell an
unlimited number of restricted securities without regard to the length of time we have been subject to Exchange Act periodic reporting or whether we are current in our Exchange Act reporting.
Persons seeking to sell restricted securities who are our affiliates at the time of, or any time during the three months preceding, a
sale would be subject to the restrictions described above. They are also subject to additional restrictions, by which such person would be required to comply with the manner of sale and notice
provisions of Rule 144 and would be entitled to sell within any three-month period only that number of securities that does not exceed the greater of either of the
- 1% of the number of shares of our common stock then outstanding, which will equal approximately 140,500 shares immediately
after the completion of this offering based on the number of shares outstanding as of September 30, 2014; or