New Mexico Clauses Relating to Transfers of Venture interests - including Rights of First Refusal

• Category: Partnerships - Drafting Joint Venture Agreements
• State: Multi-State
• Control #: US-P0611-6AM
• Format: Word; Rich Text

Description

This form contains sample contract clauses related to Transfers of Venture Interests (Including Rights of First Refusal). Adapt to fit your circumstances. Available in Word format. New Mexico Clauses Relating to Transfers of Venture Interests — Including Rights of First Refusal When entering into a venture or partnership agreement in New Mexico, it is important to consider the various clauses relating to the transfer of venture interests, specifically those involving rights of first refusal. These clauses serve to protect the interests of all parties involved and ensure a fair and equitable transfer process. In New Mexico, there are several types of clauses commonly used, including: 1. Right of First Refusal (ROAR) Clause: This clause grants existing venture partners or shareholders the first opportunity to purchase any interest being offered for sale by a fellow partner. It provides them with the option to match the terms of a third-party offer or negotiate an alternative agreement. 2. Right of First Offer (ROFL) Clause: Similar to an ROAR clause, the ROFL clause grants existing venture partners the right to be the first party informed of any interest being offered for sale. Instead of an immediate obligation to match the terms, they are provided with an opportunity to negotiate and submit an offer before the interest is offered to third parties. 3. Right of First Negotiation (ROAN) Clause: This clause requires a partner intending to transfer their venture interest to first negotiate the terms of the transfer with existing partners before engaging in negotiations with third parties. It ensures that existing partners are given the chance to participate in the negotiation process before external parties are involved. 4. Drag-Along Right (DAR) Clause: This clause allows a majority of venture partners to force a minority partner to participate in a sale or transfer of venture interests. By invoking this clause, majority partners can require minority partners to sell their interests alongside their own when receiving an offer from a third party. 5. Tag-Along Right (TAR) Clause: This clause grants minority partners the right to participate in the sale of venture interests when a majority partner receives an offer from a third party. It ensures that minority partners have the option to "tag along" with the majority partner and sell their interests on the same terms and conditions. These New Mexico clauses relating to transfers of venture interests, including rights of first refusal, are essential for protecting the rights and interests of all parties involved. It is crucial for venture partners to carefully draft and negotiate these clauses to ensure a fair and equitable transfer process that aligns with their specific business needs.

New Mexico Clauses Relating to Transfers of Venture Interests — Including Rights of First Refusal When entering into a venture or partnership agreement in New Mexico, it is important to consider the various clauses relating to the transfer of venture interests, specifically those involving rights of first refusal. These clauses serve to protect the interests of all parties involved and ensure a fair and equitable transfer process. In New Mexico, there are several types of clauses commonly used, including: 1. Right of First Refusal (ROAR) Clause: This clause grants existing venture partners or shareholders the first opportunity to purchase any interest being offered for sale by a fellow partner. It provides them with the option to match the terms of a third-party offer or negotiate an alternative agreement. 2. Right of First Offer (ROFL) Clause: Similar to an ROAR clause, the ROFL clause grants existing venture partners the right to be the first party informed of any interest being offered for sale. Instead of an immediate obligation to match the terms, they are provided with an opportunity to negotiate and submit an offer before the interest is offered to third parties. 3. Right of First Negotiation (ROAN) Clause: This clause requires a partner intending to transfer their venture interest to first negotiate the terms of the transfer with existing partners before engaging in negotiations with third parties. It ensures that existing partners are given the chance to participate in the negotiation process before external parties are involved. 4. Drag-Along Right (DAR) Clause: This clause allows a majority of venture partners to force a minority partner to participate in a sale or transfer of venture interests. By invoking this clause, majority partners can require minority partners to sell their interests alongside their own when receiving an offer from a third party. 5. Tag-Along Right (TAR) Clause: This clause grants minority partners the right to participate in the sale of venture interests when a majority partner receives an offer from a third party. It ensures that minority partners have the option to "tag along" with the majority partner and sell their interests on the same terms and conditions. These New Mexico clauses relating to transfers of venture interests, including rights of first refusal, are essential for protecting the rights and interests of all parties involved. It is crucial for venture partners to carefully draft and negotiate these clauses to ensure a fair and equitable transfer process that aligns with their specific business needs.