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
23, east road
San Francisco, U.S.
Great Deal Corporation
34th avenue road
- 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.
- 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