INVESTMENT AGREEMENT

mukiialice64
Samples legal papers
May 7, 2023

INVESTMENT AGREEMENT

This Investment Agreement (the “Agreement”) is entered into as of January 1, 2021, (hereinafter, “Effective Date”) by and between Bubbari, (hereinafter the “Company”)   of __________________address and  ___________________(hereinafter the “Investor” of _______________address. The Company and Investor collectively referred to as the “Parties” or individually as the “Party” and includes that Party’s successors and assigns.

RECITAL

Whereas the Parties now wish to enter into this Agreement wherein the Investor will invest ____________QAR(hereinafter the “Investment” ) in the Company in the form of a profit sharing loan, in line with the terms of this Agreement.

In consideration of covenants and agreements contained in this agreement, and other good and valuable consideration, the receipt of which is hereby acknowledged, Parties agree to the following terms and conditions and to be bound thereby:

CLAUSES

[MK1] 

  1. TERM

This Agreement shall be valid from the Effective Date until  ________________(hereinafter  the “Term”).

  • Initial Categorization & Service.
  1. The Investor hereby appoints ……………(hereinafter the “Appointee”)   in accordance with the investment strategy and as agreed by the  parties to purse the Investment details..The Appointee  can either be treated as Elective(Passive) Investor or Active Investor. 
  2. As an Active Investor, they  can request at any time, the Company’s financial details  showing the Company’s progress in probability and capital structure. 
  3. In the case of aPassive Investor, the Company will share the Investment and the decided Investment interest  percentage at end of the fiscal year.
  4.  The Investor must be informed and agree on  the small, medium, higher risk, and other related or  associated risk which may be  incurred by  the Investment and suitability advised to resolve the issues as soon as possible.
  5. The Investor  agrees that the Company  may withhold their financial information including but not limited to  verify the Investor’s  identity and financial standing [MK2] if  the Investor agrees. 
  6. The Investor warrants and guarantees that they have expertise, experience and knowledge to understand the risk that they may incur herein and agree to  be involved in future investment if required. The Investor agrees to indemnify, hold harmless and defend the Company and its directors, officers, employees, and agents from and against any action, claim, demand, or liability, including reasonable attorney’s fees and costs, arising from such risk herein.
  7.  
  8. .
  9. The Investor has a right to raise a   concern regarding the Company’s financial information in writing if they are  not satisfied with the Company’s financial reporting.
  10.  In the event the Investor changes the Appointee, , they must promptly inform the Company.

3)  Investment

3.1) In respect of the Investor’s Portfolio:

  1. The Investor foregoes and waives any claim to a fixed rate of interest on his loan to the Company, in exchange for profit related interest equal to ________% of all the profits, rights, interests and/or gains generated by the Investment during the Term (hereinafter the “Return (s)”). The Investment amount shall be paid within ____________from the Effective Date.
  • The Investor shall make the Investment  to theCompany  (by means of electronic transfer, Cheques or Cash subject to  the mutual understanding of both parties) on or before the Execution Date and shall provide proof of the said transfer or deposit where applicable.
  • The Investor has right to invest further amounts e.g in case of new product development and marketing of the Brand which generate higher profitability. This further investment will be treated as a separate investment and the parties must agree in writing on the terms that will govern the said further investment.
  • The Investor may not impose the decision on the Company  to investment in  a loss making product.  The Investor will have no right to withdraw the Investment for a period of 1 Year  from the Effective Date.  After the said 1 year, the Investor may withdraw the Investment after serving a 30 day’s written notice to the Company and the Company will be liable to pay the full Investment amount owing to the Investor  along with the agreed profits percentage[MK3]  due at the time.

  3.2) In the event  the Investment is not contributed and invest in the Company  and according to the business strategy and agreed

         investment policy within the initial period, the Investor has a right to request the refund of the Investment  or provide

         an appropriate investment  strategy to generate profitability by

         applying alternative investment strategy.

3.3) The Investor will be provided with the multiple investment exposure by the Company  and future development of investment portfolio depending on the profits percentage . The Company  will provide complete description and documentation of investment portfolio with future return within 8 working days after the signature and receipt of the investment amount.

4) Service

The Investor must be provided with Free Service regarding the investment strategy with complete discretion over the Investment , refunded amount, yearly return and all the transaction which effect the investment.  The Investor must be aware of the Market situation and the Company  will provide Free Service and market information regarding the future investment opportunities and Projects.

5) Investment Strategy:

The Investor agrees that the Investment strategy and investment conditions will not be breached as a result of any event and circumstances. The Investor input and consultant will be highly appreciated in case of changing pricing strategy and change/ reduction in percentage of return on investment according to the market with mutual agreement between the parties..

6) Term Applicable and Execution policy

 The Investor should be aware about the investment policy and rules which is established according to the market demand and investment rule and regulation. If the Investor is investing any other commodities which is related to the Company’s  business, they  have to inform the Company accordingly. The Investor hereby confirms that they have understood and read the execution policy which is mutually agreed by both parties. The Investor’s specific instruction regarding the execution of the Investment  shall be highly considered and should be according to the investment policy. The Investor recognizes that each individual aggregated transaction may operate to the advantage or disadvantage of the Investment.

7) Reports and valuations

The Investor is entitled to get periodic report after 6 months.The Investor must acknowledge the complete understating of the reports. The Investor must be informed regarding the Fair Value of Investment and future returns which provided the forecasted return and fair value. The Report must include the performance and valuation of the Investment provided by the Investor. The Investor has authority to audit   the   financial report and authentication and validation of the report will be guaranteed by the Company.

8) Fees and expenses

 The Company has the discretion to charge the Investor fees in the event  the Investor discloses the confidentially of this  Agreement including applicable legal fees. The Investor will have to bear the expense for an external auditor or financial advisor who provide the financial consultancy to the Investor regarding their Investment.

9) Obligations of the Investor

The Investor is obliged to provide the information which is basis for the declaration made by the Investor in their  application form including:

  1. A written statement on whether or not the Investor wishes to seek complete details of the Investment on a monthly, or yearly basis.
  2. The Investor must provide a written declaration of any profit/ or return received on Investment for a period of  3years.
  3. The Investor to provide the complete address and detail information to the Company  which is accurate as dated on the Agreement.

The Investor must inform on any change in the information which is provided in the application form. The Investor shall also inform the Company  regarding the financial advice to prevent from future investment. The Investor is obligated to demand a complete feasibility report before making a future investment.

12) Material Interest & Conflicts

The Investor must ensure fair treatment between both parties. The Investor must be aware of the Company’s conflict-of-interest policy(s)  and understand the said policy(s). The Investor must not have or invest in the similar business or provide confidential data to any other parties in similar business to that of the Company. In the event the Investor has already invested in similar business or has similar business, the Investor must make sure no conflict of interest arises therein.  The Investor must clarify the above   return and percentage clause which will not case the conflict of interest.

13) Termination, complaints, withdrawal and return of investments

 This Agreement shall automatically terminate once the Investor has received their Investment, and all the agreed percentage or return from the Company The Investor must acknowledge in writing all due payment has been settled by  the Company.

Subject to Clause 3.1 (d), that limits the Investor from withdrawing the Investment prior to 1 year, either party may terminate this Agreement upon service to the other party of no less than 3 months’ notice in writing. If a party wishes to terminate the Agreement with less than these stated days, the other party reserves the right to charge costs that they have already paid in advance or incurred.

The termination of this agreement shall not discharge the liabilities accumulated by either party. Any Clauses intended by the parties or this Agreement to survive the termination of this Agreement shall survive the termination of this Agreement by whatever cause.

If the  Investor wishes to cancel the  Agreement, they  must first notify the Company in writing  with concrete reason to request for repayment of the fund.  In case of termination, by the Investor, before the Terms expires, the Company  will charge the ………… QAR and no investment return will be paid. The Investor is obligated to pay any deduction charges which are enforced by the Company .

This Agreement will be eligible if the Investor wishes the withdrawal of all or uninvested cash excluding the investment fees which they  are not entitled to withdraw (if they doubt or are not satisfied with investment strategy).  [MK4] 

  1. In case of any  breache by  the Investor, the Company  will notify the Investor of the breach through a 30 day’s written notice and require that the Investor remedy the breach within that 30 days’ notice period failure to which the Company may  immediately terminate the Agreement[MK5] .
  2.  If the Investor is  declared  bankrupt or faces any legal case, that may affect this Agreement per the Company’s discretion[MK6] , this Agreement will be subject to termination unless the Investor provides  proof of clearance from the said charges and bankruptcy.
  3. In case of any complaint from the Investor regarding the financial reporting, the Company  must provide in-depth clarification to the Investor failure to which  the Investor will have the  right to terminate the Agreement  and claim the Invested  [MK7] 
  4.  [MK8] 

15) Consequences of termination

The Investor is entitled to claim the complete documentation and net cash, or Realizable investment amount (after deduction and fees) as decided by the Company  after the termination of the Agreement. In other cases, the Company y will be notified to re-claim the amount if the termination is done under breach of Agreement and other circumstances. 

16) Information contained in the Investment Details

The Investor has taken all reasonable care to ensure that the facts stated in the Investment Details are true and accurate in all material respects and that there are no other facts whose omission would make any statement of fact in the Investment Details materially misleading or inaccurate. Certain information contained in the Investment Details has been obtained from published sources prepared by third parties. The Company  does  not accept or assume any responsibility for the accuracy or completeness of such information. No person has been authorized in connection with the investment opportunity described in the Investment Details to give any information or to make any representations other than as contained in the Investment Details, and, if given or made, such information or representation must not be relied upon as having been authorized.

[MK9] 

 The information contained in the Investment Details should not be assumed to have been updated at any time after……………. and the provision of the Investment Details to the Investor does not constitute a representation by the Manager that such information will be or has been updated at any time after the date of the Investment Detail20) Confidential information

Neither party  shall disclose to third parties’ information the disclosure of which it would be or might be a breach of duty or confidence to any party . The parties   will at all times keep confidential all information acquired under this Agreement, except for information which:

  1. is in the public knowledge.
  2.  may be entitled or bound to disclose under compulsion of law or applicable regulation.
  3. is requested by regulatory agencies (Like police and

financial tax authorities);

  •  is given to its professional advisers & (Auditor) where reasonably necessary for the performance of their professional services.

[MK10] 

Signed by the duly authorized representative of the COMPANY   Signature:         Name:   Designation:     Date:…………………………………………………… Signed by the duly authorized representative of the INVESTOR/INVESTOR     Signature:         Name:   Designation:     Date:…………………………………………………..

 

 [MK1]This is unnecessary and a repetition of what is already contained in the Recital.

 

 [MK2]Please note that is unclear what you intend to mean by this statement.

 

 [MK3]Please note that the statement was unclear and contradictory. I made by best attempts to rephrase it.

 

 [MK4]I have reworded this and provided for it in the second paragraph above.

 

 [MK5]The notice should be for compliance and not clarification or explanation. Clarification or explanation will drag the issue for an unknown period of time.

 

 [MK6]Stating “any legal case” is too broad. You should limit it to cases that may affect the Agreement as per your discretion.

 

 [MK7]This is a repetition.

 

 [MK8]This Agreement is between the Company and the Investor, you cannot tie the heirs to notify you of the Investor’s death yet they do not know about the Agreement to begin with. It will not be practicable. The Investor’s heirs and successors will come in when it is you following up on them or suing them in place of the Investor, it will be you making them aware of the Agreement and that they should make payments in place of the Investor.

 

 [MK9]Please note that it was difficult to understand what your intention was in this paragraph.  From the little I could gather, it is in conflict with the paragraph above that states that some facts/ details in the Investment Details do not constitute the Company’s facts/ details.

 

 [MK10]This is a repetition, both parties have already been bound to confidentiality.

At Legal writing experts, we would be happy to assist in preparing any legal document you need. We are international lawyers and attorneys with significant experience in legal drafting, Commercial-Corporate practice and consulting. In the last few years, we have successfully undertaken similar assignments for clients from different jurisdictions. If given this opportunity, The LegalPen will be able to prepare the legal document within the shortest time possible. You can send us your quick enquiry ( here )