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.
Arkansas Right of First Refusal and Co-Sale Agreement is a legal agreement that is commonly used in business transactions and real estate deals. It is designed to protect the interests of investors and shareholders by providing them with certain rights and options when another party is looking to sell their shares or property. This agreement ensures that existing shareholders and investors have the opportunity to purchase the shares or property before it is sold to a third party. The Right of First Refusal (ROAR) component of the agreement grants shareholders or investors the right to match any offer made by a third party for the shares or property. If a shareholder or investor decides to exercise their right, they must provide the seller with a written offer that matches or exceeds the terms of the third-party offer. The seller is then obligated to sell to the existing shareholder or investor instead. The Co-Sale Agreement, also known as the Tag-Along Agreement, is another important component included in Arkansas Right of First Refusal and Co-Sale Agreements. This provision grants minority shareholders the right to join a majority shareholder in selling their shares to a third party. If a majority shareholder receives an offer from a third party to purchase their shares, the minority shareholders have the option to participate in the sale on the same terms and conditions. It is important to note that variations of Arkansas Right of First Refusal and Co-Sale Agreements may exist depending on the specific circumstances of the deal and the preferences of the parties involved. For example, the agreement may outline specific timelines for exercising the right of first refusal or co-sale options, define the valuation process for determining the purchase price, or include any additional provisions agreed upon by the parties. In summary, the Arkansas Right of First Refusal and Co-Sale Agreement is a legal framework used to protect the interests of shareholders and investors in business transactions and real estate deals. It grants them the right to match offers made by third parties and participate in sale transactions on equal terms. Different versions of this agreement may exist, incorporating specific provisions tailored to the unique needs of each transaction.
