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Investment Agreement For Small Business
"I need an Investment Agreement For Small Business under Swiss law for a CHF 500,000 investment in my tech startup, with standard minority investor protections and board observation rights, to be completed by March 2025."
1. Parties: Identification of the investing party(ies) and the target company, including their full legal names, registration numbers, and registered addresses
2. Background: Context of the investment, including brief description of the business and purpose of the investment
3. Definitions: Definitions of key terms used throughout the agreement
4. Investment Amount and Structure: Details of the investment amount, type of shares/securities being issued, and payment terms
5. Conditions Precedent: Conditions that must be met before the investment becomes effective
6. Completion: Process and requirements for completing the investment transaction
7. Warranties and Representations: Standard warranties from the company and existing shareholders regarding the business and its affairs
8. Investor Rights: Rights granted to the investor, including information rights and any board representation
9. Transfer Restrictions: Limitations on the transfer of shares and any pre-emptive rights
10. Confidentiality: Obligations regarding confidential information and public announcements
11. Costs and Taxes: Allocation of transaction costs and tax responsibilities
12. Notices: Process for formal communications between parties
13. Governing Law and Jurisdiction: Confirmation of Swiss law as governing law and jurisdiction for disputes
14. General Provisions: Standard boilerplate provisions including entire agreement, amendments, and severability
1. Anti-dilution Protection: Protection for investors against future share issuances at lower valuations - include when requested by sophisticated investors
2. Tag-Along Rights: Right of investor to join in sale of shares by other shareholders - important for minority investor protection
3. Drag-Along Rights: Right to force other shareholders to join in sale of the company - include for majority investments
4. Veto Rights: Specific matters requiring investor approval - include for significant investments
5. Employee Share Option Pool: Provisions for employee share schemes - include if company plans to implement ESOP
6. Performance Targets: Specific business targets and consequences of meeting/missing them - include if investment is performance-linked
7. Put and Call Options: Rights to force sale or purchase of shares - include if agreed as part of exit strategy
8. Non-Competition and Non-Solicitation: Restrictions on competitive activities - include if required for business protection
1. Schedule 1: Company Information: Detailed information about the company including corporate structure, share capital, and existing shareholders
2. Schedule 2: Warranties: Detailed list of warranties given by the company and existing shareholders
3. Schedule 3: Completion Requirements: Detailed list of documents and actions required for completion
4. Schedule 4: Business Plan: Company's business plan and financial projections
5. Schedule 5: Existing Shareholder Consent: Written consents from existing shareholders if required
6. Schedule 6: Board Resolutions: Required board resolutions approving the investment
7. Appendix A: Share Capital Table: Pre and post-investment share capital structure
8. Appendix B: Articles of Association: New or amended articles of association reflecting investment terms
Authors
Technology
Manufacturing
Professional Services
Retail
Healthcare
FinTech
Hospitality
E-commerce
Clean Technology
Biotechnology
Agriculture
Digital Media
Software Development
Consumer Goods
Education Services
Legal
Finance
Corporate Development
Compliance
Executive Leadership
Investment
Strategy
Corporate Governance
Risk Management
Business Development
CEO
CFO
Legal Counsel
Investment Manager
Business Development Director
Company Secretary
Financial Controller
Corporate Lawyer
Managing Director
Board Member
Investment Analyst
Compliance Officer
Strategy Director
Private Equity Manager
Venture Capital Associate
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