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.
San Antonio, Texas Right of First Refusal and Co-Sale Agreement: A Comprehensive Overview In San Antonio, Texas, the Right of First Refusal and Co-Sale Agreement is a legal document commonly used in real estate transactions and business partnerships. This agreement gives certain individuals or entities the opportunity to purchase a property or shares of a business before they are offered to third parties. It aims to protect the rights and interests of existing owners and shareholders. The Right of First Refusal (ROAR) entitles the holder, often an existing owner or shareholder, to match the terms of a proposed sale of a property or shares of a business. In essence, if the owner or shareholder intends to sell their property or shares to a third party, they must first offer it to the holder of the ROAR to determine if they wish to exercise their right to purchase. The Co-Sale Agreement, also known as the Tag-Along Right or Co-Tag Right, is a clause accompanying the ROAR. It enables minority shareholders to participate in a sale of the business or property proportionate to their ownership percentage. In simple terms, if a majority shareholder receives a third-party offer and wants to sell, the Co-Sale Agreement allows minority shareholders to sell their shares on the same terms and conditions. Different types of San Antonio, Texas Right of First Refusal and Co-Sale Agreements may include: 1. Residential Property ROAR and Co-Sale Agreement: This type of agreement is prevalent in the residential real estate market. It allows homeowners or co-owners to protect their investment by offering the property to other joint owners before selling it to outsiders. The Co-Sale Agreement also ensures that co-owners can participate in the sale if the majority owner intends to sell their share. 2. Commercial Real Estate ROAR and Co-Sale Agreement: In the San Antonio business community, this type of agreement is commonly used when dealing with commercial properties. It safeguards the interests of tenants, neighboring property owners, and other stakeholders by granting them the first opportunity to purchase the property or shares before the owner sells to an outside buyer. 3. Company Shareholder ROAR and Co-Sale Agreement: This type of agreement is relevant to businesses and corporations operating in San Antonio. It protects minority shareholders by offering them the option to purchase shares proportionate to their ownership percentage whenever the majority shareholder intends to sell their stock. In summary, San Antonio, Texas Right of First Refusal and Co-Sale Agreement is a crucial legal and contractual framework that allows property owners and shareholders to maintain control over the sale of their assets. By exercising the Right of First Refusal and participating in the Co-Sale Agreement, existing owners and shareholders can ensure fair treatment, protect their investments, and maintain the integrity and stability of their property or business.
