This is a "Right of First Refusal and Co-Sale Agreement." It is entered into by the corporation and the purchasers of preferred stock. It gives the company and the purchasers of preferred stock certain rights of refusal and options upon the transfer of stock.
The Mississippi Right of First Refusal and Co-Sale Agreement is a legal arrangement that aims to protect the interests of shareholders in a company. This agreement grants certain rights and obligations to shareholders when it comes to selling their shares. It ensures that existing shareholders have the opportunity to purchase any shares being sold or transferred by another shareholder before they are offered to outside parties. This agreement helps maintain the integrity of the ownership structure and prevents unwanted dilution of ownership. There are two main types of Mississippi Right of First Refusal and Co-Sale Agreements: the Right of First Refusal Agreement and the Co-Sale Agreement. 1. Right of First Refusal Agreement: This agreement gives existing shareholders the first opportunity to purchase any shares being sold by a fellow shareholder. If a shareholder intends to sell their shares, they must first offer them to the existing shareholders at the same terms and conditions as offered by an outside party. If the existing shareholders decline the offer, only then can the shares be sold to an outside party. 2. Co-Sale Agreement: This agreement ensures that when a shareholder receives an offer to sell their shares, any other shareholders have the right to participate in the sale on the same terms and conditions. This agreement protects the interests of all shareholders by preventing a single shareholder from selling their shares to an outside party, potentially shifting the balance of power within the company. Both types of agreements serve to safeguard the existing shareholders' ownership rights and maintain the stability and control of the company. They typically include provisions that outline the process for exercising these rights, the conditions under which they can be waived, and any restrictions on transferring shares. Overall, the Mississippi Right of First Refusal and Co-Sale Agreement is a crucial legal document in corporate governance, providing protections and ensuring fair treatment for shareholders.
