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 New Mexico Right of First Refusal and Co-Sale Agreement is a legal document that outlines the rights and obligations of parties involved in the sale or transfer of property or shares. It is a commonly used agreement in real estate and corporate transactions in New Mexico. The Right of First Refusal provision gives a designated party the first opportunity to purchase a property or shares before the seller offers it to others. This provision ensures that the designated party has priority and can match the terms of any third-party offer. It allows the designated party to maintain or increase their ownership interest in the property or shares. In New Mexico, there are two types of Right of First Refusal and Co-Sale Agreements commonly used: 1. Real Estate Right of First Refusal and Co-Sale Agreement: This agreement is used when a property owner wishes to sell their property and has identified a potential buyer. The agreement grants the right to another party, typically a tenant or adjacent property owner, to purchase the property at the same terms and conditions as the offer received by the seller. This type of agreement is prevalent in commercial real estate transactions, where maintaining control over nearby properties is essential for business operations or future development plans. 2. Co-Sale Right of First Refusal Agreement: This agreement is commonly used in corporate settings when shareholders wish to maintain their ownership levels in the company. When a shareholder plans to sell their shares, this agreement grants other shareholders the right to purchase a proportionate number of shares. The purpose is to prevent dilution of ownership and maintain a fair balance of control among existing shareholders. Both types of agreements serve as protective measures for parties involved, allowing them to safeguard their interests and ensure they have a fair opportunity to maintain their ownership position or benefit from the sale of a property or shares. In conclusion, the New Mexico Right of First Refusal and Co-Sale Agreement is a legal document that outlines the rights and obligations of parties involved in property and share transfers. It includes provisions that grant a designated party the first opportunity to purchase the property or shares, ensuring they have priority and the ability to match any third-party offers. The two main types of agreements used in New Mexico are the Real Estate Right of First Refusal and Co-Sale Agreement and the Co-Sale Right of First Refusal Agreement, each serving different purposes in real estate and corporate transactions.
