Equity Investment Contract helps an organization in attracting capital from investors on exchange of equity in the organization. It is made between an investor and an organization on the basis of certain obligations or duties.

Sample Equity investment contract

Contract no: – HLJ-89/01

This agreement commences on 4th August 2009


Fortune Company

23, east road

San Francisco, U.S.


Great Deal Corporation

34th avenue road

Dallas, U.S.

  • Great deal corporation wants to invest a sum of $45000 and Fortune company gives a call right to purchase 450 shares@$100.
  • With the call rights to purchase share Great Deal corporation will function as a member of Fortune Company.

Both the organizations agree under the following terms and condition:-


  • Great deal corporation will have to pay the amount of the shares in full and final
  • Exercising call rights of the share by Great Deal Corporation will be the decision of Board of Directors of Fortune Company.
  • Fortune company is bound to deliver the share latest by 30th September 2009
  • Great Deal Company will get a dividend of 20% on the acquired shares.

Forfeiture of shares:-

In case Fortune Company fails to deliver shares by the provided date all the shares will deemed cancelled.

Or if Great Deal Company fails to make the payments, shares will not be delivered.

Management right

  • Fortune Company will have to provide two seats to Great Deal Corporation in the Board of Directors.
  • Great Deal Corporation will be invited for all the annual and general meetings of Fortune Company.

Hereafter, the contract is deemed to have come into existence.

Signature of Fortune Company


Signature of Great Deal Company


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