Restrictive Agreement Discount refers to a provision in the shareholder agreements, buy- sell agreements, restricted stock agreements, and other similar agreements which limit the ability of a shareholder to sell or transfer shareholding or stock to third parties. The size of the discount is directly collated with the severity of the restriction. The restrictions which may take the form of limited voting rights, stock sale restrictions, agreed to exit valuations, and first rights of refusal covenants can limit the marketability of the block of shares being valued. Typically, the discounts associated with restrictive agreements are incorporated as additional discount into lack of marketability discount which further reduces the overall fair market value of the shares being valued.