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Friends And Family Investment Agreement
"I need a Friends and Family Investment Agreement for a 5 million SAR investment into my tech startup in Riyadh, where three family members will be investing equal amounts, with specific provisions for quarterly profit sharing and a planned exit strategy by March 2025."
1. Parties: Identification of all parties involved in the investment agreement, including full legal names and contact details
2. Background: Context of the investment relationship and purpose of the agreement
3. Definitions: Clear definitions of key terms used throughout the agreement
4. Investment Amount and Structure: Details of the investment amount, payment schedule, and investment structure in compliance with Sharia principles
5. Business Purpose: Detailed description of the business or project being invested in
6. Profit Sharing Mechanism: Sharia-compliant mechanism for sharing profits and losses between parties
7. Management and Control: Rights and responsibilities regarding business management and decision-making
8. Representations and Warranties: Statements of fact and promises made by each party
9. Reporting and Information Rights: Requirements for financial reporting and investor information access
10. Term and Termination: Duration of the agreement and circumstances for termination
11. Exit Provisions: Methods and procedures for parties to exit the investment
12. Dispute Resolution: Procedures for resolving disputes, including reference to Saudi courts or arbitration
13. Governing Law: Specification of Saudi law and Sharia principles as governing law
14. Miscellaneous: Standard provisions including notices, amendments, and entire agreement clauses
1. Tag-Along Rights: Optional provision giving investors the right to join in sale of shares by other investors - relevant for larger family investments
2. Drag-Along Rights: Optional provision allowing majority investors to force minority investors to join in sale - useful for larger family groups
3. Non-Competition: Restrictions on competitive activities - relevant if investors are involved in similar businesses
4. Confidentiality: Detailed confidentiality provisions - necessary if sensitive business information is involved
5. Islamic Finance Compliance Declaration: Specific declaration of Sharia compliance - useful when required by particular family members
6. Family Council Provisions: Governance structure for family investment decisions - relevant for larger family investment groups
7. Succession Planning: Provisions for handling investment in case of death or incapacity - important for long-term family investments
1. Schedule 1: Investment Details: Detailed breakdown of investment amounts, timing, and payment structure
2. Schedule 2: Business Plan: Detailed business plan and use of investment funds
3. Schedule 3: Profit Sharing Formula: Detailed calculations and examples of profit-sharing mechanism
4. Schedule 4: Reporting Templates: Templates for required financial and operational reports
5. Schedule 5: Key Performance Indicators: Specific metrics for measuring business performance
6. Appendix A: Shareholder Contact Details: Complete contact information for all parties
7. Appendix B: Sharia Compliance Certificate: If obtained, certification of Sharia compliance from relevant authority
Authors
Family Business
Real Estate
Retail
Healthcare
Technology Startups
Manufacturing
Trading
Hospitality
Agricultural Business
Professional Services
Construction
Education
Legal
Compliance
Family Office
Investment
Finance
Corporate Governance
Business Development
Risk Management
Wealth Management
Strategic Planning
Family Business Owner
Investment Manager
Legal Counsel
Family Office Director
Wealth Manager
Business Development Manager
Corporate Lawyer
Compliance Officer
Financial Advisor
Chief Executive Officer
Chief Financial Officer
Investment Analyst
Family Business Consultant
Succession Planning Advisor
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