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    Right of First Refusal Flow Chart

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    msparalegal
    The document outlines the procedure for a shareholder's right of first refusal and tag-along rights. It involves the offering shareholder sending a non-withdrawable notice of offer to the receiving shareholder specifying the number of shares and price being offered. The receiving shareholder then has 30 days to send a notice of rejection, acceptance, or exercise their tag-along rights to sell their shares as well. If rejected, the offering shareholder has 90 days to sell to a third party at an equal or higher price before needing to repeat the process.

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    Right of First Refusal Flow Chart

    Uploaded by

    msparalegal
    233 views1 page
    The document outlines the procedure for a shareholder's right of first refusal and tag-along rights. It involves the offering shareholder sending a non-withdrawable notice of offer to the receiving shareholder specifying the number of shares and price being offered. The receiving shareholder then has 30 days to send a notice of rejection, acceptance, or exercise their tag-along rights to sell their shares as well. If rejected, the offering shareholder has 90 days to sell to a third party at an equal or higher price before needing to repeat the process.

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    ROFR

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    The document outlines the procedure for a shareholder's right of first refusal and tag-along rights. It involves the offering shareholder sending a non-withdrawable notice of offer to the receiving shareholder specifying the number of shares and price being offered. The receiving shareholder then has 30 days to send a notice of rejection, acceptance, or exercise their tag-along rights to sell their shares as well. If rejected, the offering shareholder has 90 days to sell to a third party at an equal or higher price before needing to repeat the process.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    233 views1 page

    Right of First Refusal Flow Chart

    Uploaded by

    msparalegal
    The document outlines the procedure for a shareholder's right of first refusal and tag-along rights. It involves the offering shareholder sending a non-withdrawable notice of offer to the receiving shareholder specifying the number of shares and price being offered. The receiving shareholder then has 30 days to send a notice of rejection, acceptance, or exercise their tag-along rights to sell their shares as well. If rejected, the offering shareholder has 90 days to sell to a third party at an equal or higher price before needing to repeat the process.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 1

    Offering Party sends NOTICE OF OFFER TO SELL to Receiving Party

    -Offer must be such terms and conditions as a bona fide 3


    rd
    party buyer
    is willing to pay and Offering Party is willing to accept on CASH basis
    -Specify # of Shares and Price
    -By Personal Delivery
    -Non-withdrawable, once sent

    30-day Offer Period
    Receiving Party sends
    NOTICE OF REJECTION
    OF OFFER
    Expiration of Offer
    Period
    Send Tag-Along
    Exercise Notice
    Receiving Party sends
    NOTICE OF
    ACCEPTANCE OF OFFER
    RIGHTS OF FIRST REFUSAL with TAG-ALONG RIGHTS
    PROCEDURE

    90-day ROFR Sale Period
    SALE to 3
    rd
    Party
    -at price not lower, terms not more favourable
    -If Sale involves ALL of Offering Partys Shares, Receiving
    Part may opt to require 3
    rd
    Party to assume ShA obligations
    of Offering Party
    If NO SALE to 3
    rd
    Party and Offering Party still wishes to sell,
    ROFR and Tag-Along Rights procedure must again be
    followed on any subsequent attempt to sell
    Consummate the Sale
    between Offering and
    Receiving Parties

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