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Co Investment Agreement
"Need a Co-Investment Agreement for a Series B funding round where our VC firm will be the lead investor contributing 60% of a $10M investment, with three other VCs as co-investors, targeting a Singapore-based AI software company, to be completed by March 2025."
1. Parties: Identification and details of all parties to the agreement including co-investors, target company/fund and any other relevant entities
2. Background: Context of the co-investment arrangement, investment objectives, and relationship between the parties
3. Definitions: Definitions of key terms used throughout the agreement including investment-specific terminology
4. Investment Structure: Details of investment amounts, shareholding percentages, and capital structure arrangements
5. Investment Process: Procedures for making investments, capital calls, drawdown mechanics and timing
6. Governance Rights: Decision-making processes, voting rights, board representation and management participation
7. Representations and Warranties: Standard and specific representations and warranties from all parties
8. Exit Provisions: Terms for divestment, exit strategies, and liquidation preferences
9. Term and Termination: Duration of the agreement and circumstances for early termination
10. Confidentiality: Obligations regarding confidential information and trade secrets
11. General Provisions: Standard boilerplate clauses including governing law, notices, and assignment
1. Tag-Along Rights: Rights of minority investors to join in sale of majority stake, typically included when protecting minority investors
2. Drag-Along Rights: Rights of majority investors to force minority holders to join in sale, included when majority control is important
3. Anti-Dilution Provisions: Protection against value dilution in future funding rounds, included when future capital raises are anticipated
4. Right of First Refusal: Rights of existing investors to purchase shares before they can be sold to third parties
5. Co-Sale Rights: Rights of investors to participate in sales of other investors' interests
1. Investment Schedule: Detailed breakdown of investment amounts, timing, and capital commitment structure
2. Shareholder Information: Details of existing shareholders, shareholding structure, and capitalization table
3. Investment Policy: Guidelines and criteria for making investments, including any investment restrictions
4. Valuation Methodology: Agreed methods for valuing investments and determining fair market value
5. Form of Deed of Adherence: Template for new parties joining the agreement in the future
6. Corporate Information: Key corporate details of the investment vehicle and target companies
7. Management Rights Letter: Template letter outlining management and information rights of investors
Authors
Agreement
Board
Business Day
Capital Contribution
Closing
Closing Date
Co-Investment
Co-Investment Percentage
Confidential Information
Control
Drag-Along Notice
Effective Date
Encumbrance
Event of Default
Exit Event
Fair Market Value
Group
Investment Committee
Investment Period
Investment Policy
Investment Vehicle
Lead Investor
Management
Material Adverse Change
Participating Investors
Parties
Portfolio Company
Pro Rata Share
Qualifying Investment
Related Party
Reserved Matters
Securities
Share
Shareholder
Subscription Amount
Tag-Along Notice
Target Company
Term
Transfer
Valuation
Voting Rights
Co-Investment Structure
Investment Commitments
Capital Contributions
Investment Process
Investment Policy
Management and Control
Board Representation
Reserved Matters
Transfer Restrictions
Tag-Along Rights
Drag-Along Rights
Pre-emptive Rights
Exit Provisions
Valuation
Information Rights
Confidentiality
Non-Competition
Non-Solicitation
Representations and Warranties
Indemnification
Default
Termination
Assignment
Costs and Expenses
Notices
Amendment and Waiver
Severability
Entire Agreement
Force Majeure
Dispute Resolution
Governing Law
Anti-Money Laundering
Compliance with Laws
Further Assurance
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