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This investment agreement outlines the terms for a company to receive funding from an investor and managers. The agreement sets out the price of shares, the completion date, and the events that will occur on that date. It is legally binding and contains the investment terms and conditions.
The private investment agreement includes details on the investor, managers, and company's warranties, and neutral investment agreement terms, as well as the investment contract. The founder investment agreement covers the incorporation of the company, and the manager investment agreement concerns the number of shares that the managers are interested in. The investor may direct that the investor shares be issued and registered in the name of any nominee or custodian holding such shares on its behalf as a bare nominee.
The agreement is subject to interpretation and comprises the schedules, which form part of the agreement. The agreement includes clauses on the completion of the investment, passing of resolutions, and filing forms with the Registrar of Companies.
1. Introduction: Begin by stating the name of the document and the date on which it was created. Provide the names and addresses of the parties involved, including the managers.
2. Background: Outline the reasons for the agreement, including the nature of the company and the interest of the managers in its shares.
3. Interpretation: Define any terms used in the document and explain how the schedules work.
4. Investment: Specify the number of shares that the investor is subscribing to, the price per share, and the payment terms. Also, include the conditions under which the investor can direct that shares be registered in the name of a nominee.
5. Completion: Establish the date, time, and location of the investment's completion. List the specific actions that must be taken to complete the investment and note the resolutions that must be passed to enable the allotment and issue of the investor shares.
6. Warranties: Include a warranty section that outlines the obligations of all parties and the conditions that must be met. It should be noted that the company is a legitimate entity, that the information in Schedule 2 is accurate, and that the managers hold the shares indicated in column 3 of Schedule 1.
7. Signatures: Provide a space for all parties to sign and date the agreement.
By using these steps, you can ensure that your investment agreement is comprehensive and understandable for all parties involved. Be sure to review the document thoroughly before signing to avoid any misunderstandings or disputes in the future.