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Disqualified Stock definition: Copy, customize, and use instantly

Introduction

The term "Disqualified Stock" refers to a specific type of equity interest in a company that, due to certain conditions, is treated differently from other equity interests, often for regulatory or financial covenant purposes. It is essential for distinguishing stock with particular redemption rights or conversion features that could impact financial agreements.

Below are various examples of how "Disqualified Stock" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.

Definition of "Disqualified Stock" as stock mandatorily redeemable

This definition ties "Disqualified Stock" to equity with mandatory redemption features.

"Disqualified Stock" means any stock or equity interest that, by its terms or upon the occurrence of certain events, is mandatorily redeemable or convertible into debt or other liabilities before a specified maturity date.

Definition of "Disqualified Stock" as stock with contingent redemption

This definition connects "Disqualified Stock" to redemption triggered by specific contingencies.

"Disqualified Stock" refers to any stock or equity interest that may be redeemable or repurchased at the option of the holder upon the occurrence of a contingency that is reasonably expected to occur during the term of the agreement.

Definition of "Disqualified Stock" as hybrid equity with debt-like features

This definition links "Disqualified Stock" to equity with characteristics resembling debt.

"Disqualified Stock" means any equity interest that includes terms or features, such as fixed dividends or maturity dates, that resemble obligations typically associated with indebtedness.

Definition of "Disqualified Stock" as defined by financial covenants

This definition applies "Disqualified Stock" to terms dictated by financial covenants.

"Disqualified Stock" refers to any stock or equity interest that would be treated as debt under the financial covenants of this agreement due to its redemption, repayment, or dividend payment terms.

Definition of "Disqualified Stock" as convertible into senior securities

This definition ties "Disqualified Stock" to equity convertible into debt or other senior claims.

"Disqualified Stock" means any stock or equity interest that is convertible, at the holder's option or mandatorily, into debt securities, preferred stock, or other instruments with senior claims.

Definition of "Disqualified Stock" as determined by rating agency standards

This definition connects "Disqualified Stock" to external financial standards.

"Disqualified Stock" refers to any stock or equity interest that would be classified as indebtedness or a liability according to the standards or guidelines of a recognized rating agency.

Definition of "Disqualified Stock" as specified in a merger agreement

This definition links "Disqualified Stock" to terms in a specific transaction.

"Disqualified Stock" means any stock or equity interest that is identified as such in the merger agreement or other transaction documents, typically due to its redemption or conversion provisions.

Definition of "Disqualified Stock" as excluded from equity for accounting purposes

This definition ties "Disqualified Stock" to exclusions based on accounting rules.

"Disqualified Stock" refers to any stock or equity interest that is excluded from equity classification on the balance sheet due to its terms requiring redemption or repayment within a specific period.

Definition of "Disqualified Stock" as equity with accelerated redemption

This definition connects "Disqualified Stock" to redemption that may occur sooner than other equity.

"Disqualified Stock" means any equity interest that includes provisions for accelerated redemption triggered by financial events, such as defaults or covenant breaches.

Definition of "Disqualified Stock" as stock not compliant with senior agreements

This definition links "Disqualified Stock" to terms that conflict with senior debt agreements.

"Disqualified Stock" refers to any equity interest that includes terms, such as mandatory dividends or early redemption rights, that would conflict with the provisions of senior debt agreements.

Definition of "Disqualified Stock" as prohibited by governing documents

This definition applies "Disqualified Stock" to terms inconsistent with corporate governance.

"Disqualified Stock" means any stock or equity interest whose terms violate or are inconsistent with the company’s articles of incorporation, bylaws, or similar governing documents.

Definition of "Disqualified Stock" as defined in regulatory agreements

This definition ties "Disqualified Stock" to specific regulatory terms.

"Disqualified Stock" refers to any equity interest that is treated as indebtedness or a liability under the applicable regulatory framework governing the issuer.

Definition of "Disqualified Stock" as equity with holder-initiated redemption rights

This definition connects "Disqualified Stock" to redemption rights initiated by holders.

"Disqualified Stock" means any equity interest that permits holders to demand redemption or repayment prior to the maturity of the obligations under this agreement.

Definition of "Disqualified Stock" as convertible into other Disqualified Stock

This definition links "Disqualified Stock" to equity convertible into similar instruments.

"Disqualified Stock" refers to any stock or equity interest that is convertible into other instruments or equity interests that meet the definition of Disqualified Stock under this agreement.

Definition of "Disqualified Stock" as determined by the issuer's board

This definition applies "Disqualified Stock" to terms determined by board resolutions.

"Disqualified Stock" means any equity interest designated as such by the issuer’s board of directors or equivalent governing body, based on its terms and impact on the issuer’s obligations.

Definition of "Disqualified Stock" as based on future obligations

This definition ties "Disqualified Stock" to future financial commitments.

"Disqualified Stock" refers to any stock or equity interest that includes terms requiring the issuer to make future cash payments or provide other compensation resembling debt service.

Definition of "Disqualified Stock" as equity with fixed repayment schedules

This definition connects "Disqualified Stock" to equity with structured payment terms.

"Disqualified Stock" means any equity interest that includes fixed repayment schedules, dividends, or other obligations that classify it as debt-like for financial reporting purposes.

Definition of "Disqualified Stock" as stock with conditions tied to default

This definition links "Disqualified Stock" to equity affected by default triggers.

"Disqualified Stock" refers to any equity interest that becomes redeemable, repayable, or otherwise callable upon the occurrence of a default or similar financial event.

Definition of "Disqualified Stock" as treated as a liability in insolvency

This definition ties "Disqualified Stock" to insolvency-related classifications.

"Disqualified Stock" means any equity interest that would be treated as a liability or subordinated claim in the event of the issuer’s insolvency.

Definition of "Disqualified Stock" as agreed upon by contracting parties

This definition connects "Disqualified Stock" to mutual agreement between parties.

"Disqualified Stock" refers to any stock or equity interest that the parties to this agreement agree, in writing, meets the criteria for disqualification based on its terms or features.