Equity Investment Agreement
An equity investment agreement is made between a company seeking for funds and the investor who is willing to invest in the organization. This agreement allows a company to attract investors to invest in the organization in exchange for its equity. In other words, through this agreement, the organization agrees to sell its equity in return for the investments made by the investor. These types of agreements contain details of both the parties and the terms and conditions agreed between them.
Sample Equity Investment Agreement
This agreement is made between COMPANY and INVESTOR on the effective date of 21st May, 2011.
The agreement is made to validate the sale of company’s equity in return of investment made by the investor.
Details of the Company
Name: Mr. Paul Andrews (Paulson & Company)
Contact Number: 608-828-2808
Details of the Investor
Name: Mr. Frederick Robertson (Mana Investors)
Contact Number: 608-235-7382
Duration of the contract: 12 months
Terms and conditions:
- Funds from the investment should be used for the development of the company only. Deviation from such purpose will be allowed only upon written agreement between both company and the investors.
- Investment has to be made in lump sum and should be credited in the company’s account within 7 days of execution of this agreement.
- By way of this agreement, the company does not have any obligation to return the amount to the investor. However, the company possesses the right to make return on the investment, depending upon the success of the company.
Paul Andrews Frederick Robertson
(Paulson & Company) (Mana Investors)
Category: Investment Agreements