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 District of Columbia Right of First Refusal and Co-Sale Agreement is an important legal instrument that aims to protect the interests of property owners and shareholders in the District of Columbia (D.C.). This agreement grants certain rights and privileges to existing shareholders when another shareholder intends to sell their shares or offer them to a third party. The Right of First Refusal provision within the agreement grants existing shareholders the right to purchase the shares being sold by a shareholder who wishes to divest their ownership. It gives them the first opportunity to buy the shares on the same terms and conditions offered by the selling shareholder. By exercising this right, the existing shareholder can prevent an external party from becoming a shareholder and potentially affecting the dynamics of the company or property ownership. Furthermore, the Co-Sale Agreement provision serves as an additional safeguard for shareholders by allowing them to sell their shares alongside the selling shareholder. This provision ensures that existing shareholders have the option to sell their shares on the same terms and conditions as the primary seller, ensuring fair treatment and equal opportunities. In the District of Columbia, there can be variations of the Right of First Refusal and Co-Sale Agreement, depending on the specific requirements and terms agreed upon by the participating parties. Some common variations include: 1. Right of First Offer: This variation allows the selling shareholder to present the shares to existing shareholders before offering them to external parties. However, unlike the Right of First Refusal, the existing shareholders are not obligated to purchase the shares, but rather have the opportunity to make an initial offer. 2. Right of First Negotiation: In this variation, the selling shareholder must first negotiate the terms of the sale with the existing shareholders before considering offers from third parties. It gives existing shareholders the chance to participate in the negotiation process and potentially match or improve the terms offered by external buyers. 3. Right of Refusal with Tag-Along Rights: In addition to the Right of First Refusal, this variation includes Tag-Along Rights, which allow minority shareholders to join in the sale of a controlling interest if a majority shareholder wishes to sell. This provision ensures that minority shareholders are not left with reduced control or restricted liquidity. To summarize, the District of Columbia Right of First Refusal and Co-Sale Agreement is an essential legal agreement designed to safeguard the interests of existing shareholders when a shareholder intends to sell their shares. It grants existing shareholders the right to purchase shares first and the ability to participate in the sale process on equal terms. Various variations of this agreement exist to cater to specific circumstances and shareholder preferences.The District of Columbia Right of First Refusal and Co-Sale Agreement is an important legal instrument that aims to protect the interests of property owners and shareholders in the District of Columbia (D.C.). This agreement grants certain rights and privileges to existing shareholders when another shareholder intends to sell their shares or offer them to a third party. The Right of First Refusal provision within the agreement grants existing shareholders the right to purchase the shares being sold by a shareholder who wishes to divest their ownership. It gives them the first opportunity to buy the shares on the same terms and conditions offered by the selling shareholder. By exercising this right, the existing shareholder can prevent an external party from becoming a shareholder and potentially affecting the dynamics of the company or property ownership. Furthermore, the Co-Sale Agreement provision serves as an additional safeguard for shareholders by allowing them to sell their shares alongside the selling shareholder. This provision ensures that existing shareholders have the option to sell their shares on the same terms and conditions as the primary seller, ensuring fair treatment and equal opportunities. In the District of Columbia, there can be variations of the Right of First Refusal and Co-Sale Agreement, depending on the specific requirements and terms agreed upon by the participating parties. Some common variations include: 1. Right of First Offer: This variation allows the selling shareholder to present the shares to existing shareholders before offering them to external parties. However, unlike the Right of First Refusal, the existing shareholders are not obligated to purchase the shares, but rather have the opportunity to make an initial offer. 2. Right of First Negotiation: In this variation, the selling shareholder must first negotiate the terms of the sale with the existing shareholders before considering offers from third parties. It gives existing shareholders the chance to participate in the negotiation process and potentially match or improve the terms offered by external buyers. 3. Right of Refusal with Tag-Along Rights: In addition to the Right of First Refusal, this variation includes Tag-Along Rights, which allow minority shareholders to join in the sale of a controlling interest if a majority shareholder wishes to sell. This provision ensures that minority shareholders are not left with reduced control or restricted liquidity. To summarize, the District of Columbia Right of First Refusal and Co-Sale Agreement is an essential legal agreement designed to safeguard the interests of existing shareholders when a shareholder intends to sell their shares. It grants existing shareholders the right to purchase shares first and the ability to participate in the sale process on equal terms. Various variations of this agreement exist to cater to specific circumstances and shareholder preferences.
