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Investor Rights Agreement


Formally outline the rights and responsibilities of investors. The agreement typically contains the following: the right to elect one or more directors to the company's board of directors, the right to receive various reports, financial statements, and information,the right to have its stock registered for sale in a public offering at the company's cost, the right to maintain its percentage share ownership in the company by participating in future stock issuances, and the right to participate in the sale of any shares made by the founders of the company.