The Right of First rRefusal and Co-sale Agreement is a common startup financing document that grants certain parties (often the company and major investors) a right of first refusal on share transfers and also gives investors co-sale (tag-along) rights to sell alongside a founder or other selling shareholder. In practice, a Right of First Refusal and Co-Sale Agreement is used to manage secondary sales and maintain cap table control, and the Right of First Refusal and Co-Sale Agreement sets the mechanics, notice requirements, and exceptions for permitted transfers.
