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 Bexar Texas Right of First Refusal and Co-Sale Agreement is a legal contract that grants certain rights to existing shareholders or investors when a company intends to sell its shares to a third party. This agreement ensures that existing shareholders have the option to purchase the shares being sold before any outside party is allowed to acquire them. Under the Bexar Texas Right of First Refusal provision, shareholders are given the right to match the terms and conditions of an offer made by a third party to purchase the company's shares. This means that if an outside party presents a proposal to buy the shares, the existing shareholders have the first opportunity to step in and purchase the same number of shares at the same price and on the same terms as those included in the third-party offer. The purpose of the Right of First Refusal is to protect the interests of existing shareholders in the company. It allows them to maintain their ownership percentage and influence within the company by preventing dilution caused by the entry of new shareholders without their consent. In addition to the Right of First Refusal, the Bexar Texas Co-Sale Agreement is often included in shareholder agreements. The Co-Sale Agreement acts as a mechanism to ensure that minority shareholders, who may not have the financial resources to exercise their right of first refusal, have the opportunity to join the sale of shares alongside the majority shareholders. This agreement enables minority shareholders to sell their shares at the same price and under the same terms and conditions as the majority shareholders. Essentially, it grants them the right to "tag along" in the sale of shares, ensuring fairness and equality in the transaction. It is important to note that the specific terms and variations of the Bexar Texas Right of First Refusal and Co-Sale Agreement may differ based on individual shareholder agreements and the unique circumstances of each company. Different companies may have different thresholds or timeframes for exercising the right of first refusal or co-sale rights. Ultimately, the Bexar Texas Right of First Refusal and Co-Sale Agreement provides important protection and opportunities for shareholders, promoting fairness and transparency in the sale of shares within a company. It allows existing shareholders to have control over the entry of new shareholders and facilitates the orderly transfer of ownership interests.The Bexar Texas Right of First Refusal and Co-Sale Agreement is a legal contract that grants certain rights to existing shareholders or investors when a company intends to sell its shares to a third party. This agreement ensures that existing shareholders have the option to purchase the shares being sold before any outside party is allowed to acquire them. Under the Bexar Texas Right of First Refusal provision, shareholders are given the right to match the terms and conditions of an offer made by a third party to purchase the company's shares. This means that if an outside party presents a proposal to buy the shares, the existing shareholders have the first opportunity to step in and purchase the same number of shares at the same price and on the same terms as those included in the third-party offer. The purpose of the Right of First Refusal is to protect the interests of existing shareholders in the company. It allows them to maintain their ownership percentage and influence within the company by preventing dilution caused by the entry of new shareholders without their consent. In addition to the Right of First Refusal, the Bexar Texas Co-Sale Agreement is often included in shareholder agreements. The Co-Sale Agreement acts as a mechanism to ensure that minority shareholders, who may not have the financial resources to exercise their right of first refusal, have the opportunity to join the sale of shares alongside the majority shareholders. This agreement enables minority shareholders to sell their shares at the same price and under the same terms and conditions as the majority shareholders. Essentially, it grants them the right to "tag along" in the sale of shares, ensuring fairness and equality in the transaction. It is important to note that the specific terms and variations of the Bexar Texas Right of First Refusal and Co-Sale Agreement may differ based on individual shareholder agreements and the unique circumstances of each company. Different companies may have different thresholds or timeframes for exercising the right of first refusal or co-sale rights. Ultimately, the Bexar Texas Right of First Refusal and Co-Sale Agreement provides important protection and opportunities for shareholders, promoting fairness and transparency in the sale of shares within a company. It allows existing shareholders to have control over the entry of new shareholders and facilitates the orderly transfer of ownership interests.
