Term Sheet Wiki
  • Welcome
  • Term Sheet
    • Anti-Dilution Protection
    • Bad Leaver
    • Board Composition
    • Board Observer Rights
    • Broad-Based Weighted Average
    • Co-sale Rights
    • Conditions Precedent
    • Confidentiality
    • Conversion Rights
    • Disclosure Letter
    • Drag-Along Rights
    • Corporate Governance
    • Employee Share Option Pool
    • Enforceability
    • Exclusivity and No-Shop Clause
    • Fees and Expenses
    • Founder Commitments
    • Founder Vesting
    • Full Ratchet
    • Good Leaver
    • Information Rights
    • Intellectual Property Assignment
    • Investment Amount
    • Investor Consent
    • Liquidation Preference
    • Liquidation Waterfall
    • Lock-up Period
    • Most Favored Nation (MFN)
    • Narrow-Based Weighted Average
    • Non-Competition and Non-Solicitation
    • Pay-to-Play Provisions
    • Pre-emptive Rights
    • Protective Provisions
    • Redemption Rights
    • Registration Rights
    • Right of First Refusal
    • Representations and Warranties
    • Share Class
    • Tag-Along
    • Use of Proceeds
    • Voting Rights
    • Valuation
    • Weighted Average
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  1. Term Sheet

Right of First Refusal

This gives existing shareholders the first chance to buy shares being sold before they're offered to others.

Considerations

  • Time period for exercising ROFR

  • Exceptions to ROFR

  • Impact on share transferability

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