FIRST OFFER; TAG-ALONG Clause Samples

The "First Offer; Tag-Along" clause establishes procedures for the sale of ownership interests in a company among its stakeholders. Under this clause, if a shareholder wishes to sell their shares, they must first offer them to existing shareholders before selling to outside parties (right of first offer). Additionally, if a shareholder receives an offer from a third party, other shareholders have the right to join the sale on the same terms (tag-along right). This clause ensures that existing shareholders have priority in acquiring shares and protects minority shareholders from being left out of significant ownership changes, thereby maintaining fairness and stability in the ownership structure.