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Equity Investment Agreement
"I need an Equity Investment Agreement for a Series A investment of €2 million into my Irish technology startup, with standard venture capital terms and a planned completion date of March 15, 2025."
1. Parties: Identification of the investor(s), company, and any other relevant parties to the agreement
2. Background: Context of the investment, including company status and purpose of the investment
3. Definitions and Interpretation: Key terms used throughout the agreement and rules for interpretation
4. Investment Terms: Details of the investment amount, share class, price per share, and payment terms
5. Completion: Conditions precedent, completion mechanics, and timing of the investment
6. Warranties and Representations: Standard warranties from the company and founders regarding the business
7. Investor Rights: Information rights, board representation, and other control rights granted to investors
8. Transfer Restrictions: Limitations on share transfers and pre-emption rights
9. Drag and Tag Rights: Co-sale rights and obligations in case of exit
10. Confidentiality: Obligations regarding confidential information
11. Announcements: Protocol for public statements about the investment
12. Costs: Allocation of transaction costs and expenses
13. Notices: Process for formal communications between parties
14. General Provisions: Standard boilerplate clauses including governing law, jurisdiction, and entire agreement
1. Anti-dilution Protection: Protection for investors against future down rounds, included for significant investments
2. Founder Commitments: Specific obligations of founders including non-compete and service commitments, used when founders are key to the business
3. Reserved Matters: List of actions requiring investor consent, included for larger investments
4. Put Option: Right for investors to sell shares back to company/founders in specific circumstances, included for certain investor protection scenarios
5. Preference Rights: Liquidation preference and dividend rights, included for preferred share investments
6. Employee Share Option Pool: Terms regarding employee share schemes, included when establishing or maintaining ESOP
7. Tax Matters: Specific tax-related provisions and covenants, included for complex tax structures
1. Schedule 1 - Share Capital: Details of company's share capital structure pre and post-investment
2. Schedule 2 - Warranties: Detailed list of company and founder warranties
3. Schedule 3 - Completion Obligations: List of documents and actions required at completion
4. Schedule 4 - Reserved Matters: Detailed list of matters requiring investor consent
5. Schedule 5 - Articles Amendments: Required changes to the company's articles of association
6. Schedule 6 - Deed of Adherence: Form of deed for new shareholders to sign
7. Appendix A - Board Resolutions: Form of board resolutions approving the investment
8. Appendix B - Disclosure Letter: Company's disclosure against the warranties
Authors
Technology
Financial Services
Healthcare
Biotechnology
Real Estate
Manufacturing
E-commerce
Renewable Energy
Software Development
Professional Services
Media and Entertainment
Consumer Goods
Agriculture Technology
Education Technology
Legal
Finance
Corporate Development
Executive Leadership
Compliance
Investment
Board of Directors
Corporate Governance
Strategy
Business Development
Chief Executive Officer
Chief Financial Officer
Investment Director
Legal Counsel
Corporate Lawyer
Investment Manager
Company Secretary
Board Director
Venture Capital Partner
Private Equity Manager
Corporate Development Manager
Finance Director
Compliance Officer
Strategy Director
Business Development Manager
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