Investor Rights Agreements . . .

are contracts between investors and the company and company management that contain agreements that benefit investors. A typical investor rights agreement requested by a venture capitalist might supplement the financing agreement and registration rights agreement by providing the investor with various additional contractual rights. These rights typically include:

• Rights of first refusal to purchase shares of stock management desires to sell.
  

• Rights of co-sale to participate with a manager in a sale of the manager’s stock.
  

• Rights to receive regular reports about the company’s financial condition.
  

• Rights that guarantee to the investor the ability to elect a representative to the company’s board of directors.

See: Board of Directors, Control, Co-Sale Agreements, Demand Rights, First Refusal Rights (Company), First Refusal Rights (Shareholder), Piggyback Rights, Registration Rights, Registration Rights Agreements, Shareholders’ Agreements, Tag-Along Provisions.