Revise paragraph in the Tag-Along Agreement

Aug 6th, 2022
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DocHub allows you to revise paragraph in Tag-Along Agreement swiftly and quickly. Whether your form is PDF or any other format, you can easily modify it leveraging DocHub's user-friendly interface and robust editing tools. With online editing, you can alter your Tag-Along Agreement without the need of downloading or installing any software.

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  1. First, upload your Tag-Along Agreement to DocHub.
  2. Next, choose ADD NEW > Select from Device or import your form yourself from the cloud.
  3. As soon as opened, you can start making changes utilizing tools in the top and right-hand panels. In these panels, you can find the option to revise paragraph in your Tag-Along Agreement.
  4. Hit Done at the top and then pick one of the methods in the right-hand menu of the DocHub dashboard to save your form: download, merge and split, reorder pages, convert formats, etc.

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For example, if a third party offers to buy out a company and the majority shareholder wish to accept the deal, a drag-along right will ensure that minority shareholders accept the buy-out. Basically the minority shareholders are dragged into accepting the deal on the terms negotiated by the majority shareholder.
Tag-along rights also referred to as co-sale rights, are contractual obligations used to protect a minority shareholder, usually in a venture capital deal. If a majority shareholder sells his stake, it gives the minority shareholder the right to join the transaction and sell their minority stake in the company.
The tag-along clause itself grants the minority shareholder the right (but not the obligation) to participate in the sale planned by the majority. The majority shareholder must notify all other minority shareholders covered under tag-along provisions and allow them to join in the transaction.
The tag along clause requires the minor shareholder to be allowed to join in on a sale. Both clauses are designed to give the minor shareholder the rights to receive the same price, terms and conditions as any other seller.
For example, if you own 10% of the companys shares and you have a tag along right, you would be given the opportunity to sell 10% of the total parcel of shares that are being sold. This type of clause would typically result in shareholders selling some of their shares, but none of them being able to sell all of them.
Rights of first refusal are often paired with co-sale rights (also known as tag-along rights). Co-sale rights give the holder the option to participate in the sale of the startupor any other liquidation eventon equal terms as the other parties involved.

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