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 Missouri Right of First Refusal and Co-Sale Agreement is a legal document that outlines the rights and obligations of parties involved in the purchase and sale of property or shares of a company. This agreement allows a specific party, typically an existing shareholder or a neighboring property owner, to have the first opportunity to purchase a property or shares before the owner enters into a transaction with a third party. The Right of First Refusal provision grants the right to the designated party to match or better the terms offered by a third party buyer. This provision ensures that the owner cannot sell the property or shares without giving the designated party the option to purchase it on the same terms. The designated party usually has a specified period to exercise this right. In Missouri, there are different types of Right of First Refusal and Co-Sale Agreements that may vary depending on the context and specific circumstances. These may include: 1. Shareholder Right of First Refusal: This type of agreement is commonly used in the corporate world. It grants existing shareholders the first opportunity to acquire additional shares in a company before they are offered to outsiders. This ensures that existing shareholders have the chance to maintain or increase their ownership stake by matching the terms offered by prospective buyers. 2. Neighbor Right of First Refusal: This type of agreement is often utilized in real estate transactions. It allows neighboring property owners to have the first option to purchase a property before it is sold to an unrelated buyer. This provision aims to protect the interests of neighboring properties and maintains the integrity and character of the community. 3. Co-Sale Agreement: In addition to the Right of First Refusal, a Co-Sale Agreement may also be incorporated. This agreement enables multiple shareholders of a company to coordinate their sales with a third-party buyer. If one shareholder decides to sell, the other shareholders have the option to join the transaction and sell their shares on the same terms. Overall, the Missouri Right of First Refusal and Co-Sale Agreement is a powerful legal tool that ensures certain parties have the option to participate in a sale transaction. It helps safeguard the interests of shareholders, neighboring property owners, and other relevant parties in Missouri.
