Fund investment agreementFund Investment Agreement • July 8th, 2021
Contract Type FiledJuly 8th, 2021Existing shareholders and the company All the existing shareholders (and in particular the founders) and the company should be a party to the agreement, although it may not be practical for all minority shareholders to be a party if there are a large number of them. Investors As the investment agreement deals with the subscription for shares by the investors in return for the investment monies, the investment agreement should bind all investors participating, including any separate funds that are investing. Future shareholders It is usual to have a provision requiring any transferee or new allottee of shares to enter into a deed of adherence which has the effect of treating the new shareholder as if he were an original party to the investment agreement and therefore bound by the provisions of the agreement. There is often a discretion for the board to waive this requirement and an exclusion for those exercising options. Tranche payments It is common in investments in life sciences comp