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Investment Commitment Agreement
"I need an Investment Commitment Agreement for a UAE-based technology startup, where a venture capital firm will invest AED 5 million in three tranches, with the first tranche to be released in March 2025, including specific performance milestones for each funding round."
1. Parties: Identification of the investor(s) and investee(s), including full legal names, registration details, and addresses
2. Background: Context of the investment, relationship between parties, and purpose of the agreement
3. Definitions: Key terms used throughout the agreement, including investment-specific terminology
4. Investment Commitment: Details of the investment amount, type, and form of investment
5. Investment Terms: Specific conditions, timing, and mechanics of the investment
6. Conditions Precedent: Prerequisites that must be satisfied before investment obligation becomes binding
7. Representations and Warranties: Statements of fact and assurances from both parties
8. Covenants: Ongoing obligations of the parties during the investment period
9. Investment Process: Procedures for making and receiving investments, including drawdown mechanisms
10. Governance Rights: Investor's rights in relation to company management and decision-making
11. Regulatory Compliance: Obligations regarding UAE laws, regulations, and reporting requirements
12. Events of Default: Circumstances constituting breach and corresponding remedies
13. Term and Termination: Duration of agreement and circumstances for early termination
14. Confidentiality: Protection of sensitive information and trade secrets
15. Notices: Communication procedures between parties
16. Governing Law and Jurisdiction: Specification of UAE law and courts' jurisdiction
17. General Provisions: Standard boilerplate clauses including amendment, assignment, and severability
1. Shariah Compliance: Required when the investment must comply with Islamic finance principles
2. Anti-Dilution Protection: Include when protecting against future dilution of investment value
3. Tag-Along Rights: Optional protection allowing investor to join in sale of shares by other shareholders
4. Drag-Along Rights: Optional right to force minority shareholders to join in sale of company
5. Right of First Refusal: Include when parties want pre-emptive rights on future share transfers
6. Information Rights: Detailed reporting requirements beyond standard governance rights
7. Exit Mechanisms: Include specific provisions for investment exit strategies
8. Force Majeure: Include when parties want specific provisions for unforeseen circumstances
9. Security Arrangements: Required when investment includes security or collateral arrangements
1. Investment Schedule: Detailed breakdown of investment amounts, timing, and tranches
2. Conditions Precedent Checklist: List of all required conditions and their status
3. Corporate Documents: Copies of relevant corporate authorizations and registrations
4. Key Performance Indicators: Metrics and targets related to the investment
5. Calculation Methods: Formulas and methods for calculating various financial terms
6. Form of Drawdown Notice: Template for requesting investment disbursements
7. Shareholders Agreement Terms: Key terms from related shareholders agreement if applicable
8. Compliance Requirements: Detailed regulatory and reporting requirements
9. Security Documents: Forms of any security or guarantee documents
Authors
Technology
Real Estate
Financial Services
Healthcare
Education
Manufacturing
Retail
Energy
Infrastructure
Transportation
Hospitality
E-commerce
Islamic Finance
Telecommunications
Media and Entertainment
Professional Services
Industrial
Agriculture
Construction
Legal
Finance
Investment
Compliance
Risk Management
Corporate Development
Treasury
Board of Directors
Executive Management
Mergers and Acquisitions
Due Diligence
Corporate Governance
Business Development
Chief Executive Officer
Chief Financial Officer
Chief Investment Officer
Investment Director
Legal Counsel
Corporate Lawyer
Investment Manager
Fund Manager
Managing Director
Finance Director
Compliance Officer
Company Secretary
Board Director
General Counsel
Investment Analyst
Risk Manager
Portfolio Manager
Transaction Manager
Business Development Director
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