Contra Costa California Right of First Refusal Clause for Shareholders' Agreement

• Category: Corporations - Shareholders and Stock
• State: Multi-State
• County: Contra Costa
• Control #: US-01770
• Format: Word; Rich Text

Description

This is a model clause for a shareholder's agreement addressing Right of First Refusal. If a shareholder wishes to sell shares, the company will be given notice and has the right to buy the shares during a certain limited time period. Adapt to fit your circumstances. A Contra Costa California Right of First Refusal Clause for Shareholders' Agreement is a provision that outlines the rights of shareholders in a company located in Contra Costa County, California. This clause gives existing shareholders the first opportunity to purchase any shares that are being sold by another shareholder. It aims to maintain the existing ownership structure of the company and prevent unwanted third-party involvement. In Contra Costa California, there may be different types of Right of First Refusal Clauses for Shareholders' Agreements, depending on the specific needs and objectives of the shareholders. Let's explore some potential variations: 1. Standard Right of First Refusal Clause: This clause grants existing shareholders the right to purchase any offered shares before they can be sold to a third party. If a shareholder decides to sell their shares, they must first offer them to the other shareholders at a pre-determined price or based on an appraisal valuation. If the existing shareholders decline the offer, only then can the selling shareholder proceed with selling to a third party. 2. Reverse Right of First Refusal: This clause functions similarly to the standard one, but with a unique twist. Instead of offering the shares to existing shareholders first, the selling shareholder must obtain a third-party offer first. Subsequently, the existing shareholders have the right to match the offer and purchase the shares on the same terms as the third-party offer. 3. Right of First Offer Clause: This variant allows existing shareholders to have the first opportunity to make an offer to buy shares from a willing seller. However, unlike the Right of First Refusal Clause, there is no pre-determined price or third-party offer involved. Instead, the selling shareholder is obligated to consider any offers made by existing shareholders before entertaining other potential buyers. 4. Option Right of First Refusal: This type of clause incorporates an option agreement. When a shareholder wishes to sell their shares, they provide a written notice to the existing shareholders. The existing shareholders then have the option to enter into an agreement to purchase the offered shares at a specific price and within a defined timeframe. If the shareholders do not exercise their options, the selling shareholder is free to pursue other buyers. In summary, a Contra Costa California Right of First Refusal Clause for Shareholders' Agreements is a critical component in preserving the control and ownership of a company. It offers several variations, such as the standard, reverse, right of first offer, and option right of first refusal clauses. These clauses safeguard the interests of existing shareholders and ensure the smooth and transparent transfer of shares within the company.

A Contra Costa California Right of First Refusal Clause for Shareholders' Agreement is a provision that outlines the rights of shareholders in a company located in Contra Costa County, California. This clause gives existing shareholders the first opportunity to purchase any shares that are being sold by another shareholder. It aims to maintain the existing ownership structure of the company and prevent unwanted third-party involvement. In Contra Costa California, there may be different types of Right of First Refusal Clauses for Shareholders' Agreements, depending on the specific needs and objectives of the shareholders. Let's explore some potential variations: 1. Standard Right of First Refusal Clause: This clause grants existing shareholders the right to purchase any offered shares before they can be sold to a third party. If a shareholder decides to sell their shares, they must first offer them to the other shareholders at a pre-determined price or based on an appraisal valuation. If the existing shareholders decline the offer, only then can the selling shareholder proceed with selling to a third party. 2. Reverse Right of First Refusal: This clause functions similarly to the standard one, but with a unique twist. Instead of offering the shares to existing shareholders first, the selling shareholder must obtain a third-party offer first. Subsequently, the existing shareholders have the right to match the offer and purchase the shares on the same terms as the third-party offer. 3. Right of First Offer Clause: This variant allows existing shareholders to have the first opportunity to make an offer to buy shares from a willing seller. However, unlike the Right of First Refusal Clause, there is no pre-determined price or third-party offer involved. Instead, the selling shareholder is obligated to consider any offers made by existing shareholders before entertaining other potential buyers. 4. Option Right of First Refusal: This type of clause incorporates an option agreement. When a shareholder wishes to sell their shares, they provide a written notice to the existing shareholders. The existing shareholders then have the option to enter into an agreement to purchase the offered shares at a specific price and within a defined timeframe. If the shareholders do not exercise their options, the selling shareholder is free to pursue other buyers. In summary, a Contra Costa California Right of First Refusal Clause for Shareholders' Agreements is a critical component in preserving the control and ownership of a company. It offers several variations, such as the standard, reverse, right of first offer, and option right of first refusal clauses. These clauses safeguard the interests of existing shareholders and ensure the smooth and transparent transfer of shares within the company.