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Private Equity Agreement
"I need a Private Equity Agreement for a $50 million investment in an Indian healthcare technology company, with provisions for a staged investment over three tranches in 2025 and specific focus on founder retention and technology IP protection clauses."
1. Parties: Identification of the investing entity, target company, promoters, and other key stakeholders
2. Background: Context of the transaction, including company history and investment rationale
3. Definitions: Comprehensive definitions of terms used throughout the agreement
4. Investment Terms: Details of investment amount, valuation, and securities being issued
5. Conditions Precedent: Conditions that must be satisfied before investment completion
6. Completion Mechanics: Step-by-step process for closing the investment transaction
7. Representations and Warranties: Statements of fact and assurances from the company and promoters
8. Covenants: Ongoing obligations of the company and promoters
9. Board Composition and Governance: Board structure, appointment rights, and corporate governance framework
10. Reserved Matters: Decisions requiring investor consent
11. Information and Inspection Rights: Investor's rights to company information and inspection
12. Transfer Restrictions: Limitations on transfer of shares by parties
13. Exit Rights: Mechanisms for investor exit including IPO, strategic sale, and put options
14. Events of Default: Circumstances constituting default and consequences
15. Indemnification: Protection against losses due to breach or misrepresentation
16. Confidentiality: Protection of confidential information
17. Dispute Resolution: Mechanism for resolving disputes between parties
18. Governing Law and Jurisdiction: Applicable law and courts having jurisdiction
19. Miscellaneous: Standard boilerplate provisions including notices, amendments, and severability
1. Tag-Along Rights: Rights of investor to join in sale of shares by promoters - included when minority investor protection is crucial
2. Drag-Along Rights: Rights to force other shareholders to join in sale - included for majority investors
3. Anti-Dilution Protection: Protection against value dilution in down rounds - included for most VC/PE investments
4. ESOP Pool: Employee stock option provisions - included when company has/plans employee stock programs
5. Founder/Key Employee Obligations: Non-compete and non-solicit provisions - included when founder retention is crucial
6. Strategic Rights: Special rights for strategic investors - included for industry-specific investors
7. Multiple Closing Provisions: Mechanics for multiple investment tranches - included for staged investments
8. Foreign Investment Compliance: Special provisions for foreign investors - included when investor is foreign entity
1. Schedule 1: Capital Structure: Pre and post-investment shareholding pattern
2. Schedule 2: Conditions Precedent: Detailed list of conditions to be satisfied before completion
3. Schedule 3: Warranties: Detailed warranties given by company and promoters
4. Schedule 4: Reserved Matters: Comprehensive list of investor consent matters
5. Schedule 5: Completion Schedule: Detailed steps for completion and required documentation
6. Schedule 6: Company Information: Key company details including financials, material contracts, and assets
7. Schedule 7: Disclosure Schedule: Exceptions to warranties and representations
8. Schedule 8: Key Employees: List of key employees and their terms of employment
9. Appendix A: Form of Legal Opinion: Format of legal opinion to be provided at completion
10. Appendix B: Board Resolution Format: Format of required corporate authorizations
11. Appendix C: Employment Agreements: Format of key employee agreements
12. Appendix D: Constitutional Documents: Amended articles of association and other corporate documents
Authors
Technology
Healthcare
Manufacturing
Financial Services
E-commerce
Real Estate
Infrastructure
Consumer Goods
Education
Renewable Energy
Telecommunications
Biotechnology
Retail
Agriculture Technology
Media and Entertainment
Legal
Finance
Corporate Development
Compliance
Investment
Due Diligence
Corporate Secretarial
Risk Management
Strategy
Senior Management
Chief Executive Officer
Chief Financial Officer
General Counsel
Investment Director
Private Equity Partner
Corporate Lawyer
Investment Manager
Company Secretary
Chief Legal Officer
Investment Analyst
Due Diligence Officer
Compliance Officer
Managing Director
Board Director
Finance Director
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