Cash Investment Agreement Sample

These types of investments have different characteristics and benefits that can contribute to the development of your business. This agreement is a classic investment agreement in which the existing shareholders of a company (who are often the original founders of the company) enter into an agreement with an investor who invests money in the company in exchange for shares in the company. This is an alternative mode of financing for a company rather than looking for a bank or a private loan. It is a short-form agreement that assumes that all existing shareholders are also directors of the company and, most importantly, will continue to hold shares in the company. This distinguishes it from a share purchase agreement in which all the shares of the company are purchased and the original shareholders leave the business. Note, however, that when issuing new shares to an investor, each of the existing shareholders dilutes their stake in the company. The decisions referred to in Annex 6 to the Agreement on investment in shares shall concern the mechanics of the procedure. . . .