When it comes to investing your hard-earned money, it’s essential to have an investor and investee agreement in place to ensure that both parties are on the same page. This agreement is a legally binding contract that outlines the terms and conditions of the investment, including the amount of money being invested, the ownership percentage, and the expected returns.
To help you get started with your investor and investee agreement, we’ve put together a sample template that you can use as a reference. Keep in mind that every investment is unique, so it’s important to consult with a legal professional before finalizing any agreement.
Investor and Investee Agreement Template
This Investor and Investee Agreement (the “Agreement”) is made and entered into as of 2024, by and between [investor’s name], a [state of incorporation] corporation, (“Investor”), and [investee’s name], a [state of incorporation] corporation, (“Investee”).
WHEREAS, Investor desires to invest in Investee and Investee desires to accept such investment, subject to the terms and conditions set forth below.
NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the parties agree as follows:
1. Investment. Investor hereby agrees to invest [dollar amount] in Investee (the “Investment”) in exchange for [ownership percentage] of the equity in Investee.
2. Use of Proceeds. Investee shall use the proceeds from the Investment for [purpose of investment].
3. Representations and Warranties of Investee. Investee represents and warrants to Investor that:
(a) Investee is a corporation duly organized, validly existing and in good standing under the laws of [state];
(b) Investee has the power and authority to enter into and perform its obligations under this Agreement;
(c) Investee has obtained all necessary consents, approvals and authorizations required to consummate the transactions contemplated by this Agreement;
(d) The execution and delivery of this Agreement by Investee does not and will not violate any law, regulation, order, judgment or decree applicable to Investee;
(e) The execution, delivery and performance of this Agreement by Investee will not result in any breach of or constitute a default under any agreement, instrument or document to which Investee is a party or by which it is bound;
(f) The financial statements and other information provided to Investor by Investee are true, accurate and complete in all material respects, and do not contain any untrue statement of a material fact;
(g) There are no outstanding liabilities, obligations or claims against Investee, except as otherwise disclosed to Investor in writing.
4. Representations and Warranties of Investor. Investor represents and warrants to Investee that:
(a) Investor has the power and authority to enter into and perform its obligations under this Agreement;
(b) The execution and delivery of this Agreement by Investor does not and will not violate any law, regulation, order, judgment or decree applicable to Investor;
(c) The execution, delivery and performance of this Agreement by Investor will not result in any breach of or constitute a default under any agreement, instrument or document to which Investor is a party or by which it is bound;
(d) Investor has the financial means to fulfill its obligations under this Agreement.
5. Governing Law. This Agreement shall be construed and enforced in accordance with the laws of the State of [state], without giving effect to any choice of law or conflict of law provisions.
6. Entire Agreement. This Agreement constitutes the entire agreement between the parties relating to the subject matter hereof, and supersedes all prior negotiations, understandings and agreements between the parties relating to the subject matter hereof.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.
[Investor’s name]
By: _______________________________________
Title: _____________________________________
[Investee’s name]
By: _______________________________________
Title: _____________________________________
Conclusion
An investor and investee agreement is essential for any investment deal to ensure that all parties are aware of their obligations and that there is a clear path forward. This sample template can help you get started, but it’s important to consult with legal professionals to ensure that your agreement fits the unique needs of your investment deal. With a solid agreement in place, you can move forward with confidence and peace of mind.