Free Law Firm Investment Agreement Template

Law Firm Investment Agreement

This Law Firm Investment Agreement ("Agreement") is entered into on [Date], by and between [Your Company Email], a law firm organized and existing under the laws of [State] ("Company"), and [Second Party], an individual/entity organized and existing under the laws of [State] ("Investor").

I. Investment Terms

  1. Investment Amount: Investor agrees to invest $[00] into the Company in exchange for equity ownership constituting [00] % of the Company's ownership.

  2. Investment Structure: The investment shall be structured as a purchase of equity shares in the Company.

  3. Valuation: The Company's valuation for the purpose of this investment is determined to be $[00].

II. Rights and Obligations

  1. Investor Rights: Investor shall have the following rights:

a) Right to receive regular financial reports and updates from the Company.

b) Right to attend and vote at shareholder meetings in accordance with their ownership percentage.

c) Right to appoint one observer to attend meetings of the Company's board of directors.

  1. Company Obligations: The Company agrees to:

a) Use the invested funds for the purposes outlined in Section 5 of this Agreement.

b) Provide Investor with access to financial records and other relevant information upon request.

III. Use of Funds

  1. The invested funds shall be used by the Company for:

a) Expansion of legal services.

b) Recruitment and retention of top legal talent.

c) Technological upgrades and infrastructure improvements.

d) Marketing and business development activities.

IV. Governance

  1. Board Representation: Investor shall have the right to appoint one member to the Company's board of directors.

  2. Decision-Making: Major decisions, including changes to the Company's business plan or the issuance of additional equity, shall require approval by a majority vote of the board of directors, including the Investor's appointed member.

V. Financial Provisions

  1. Distribution of Profits: Profits of the Company shall be distributed among the shareholders in accordance with their ownership percentages, subject to any preferential treatment agreed upon by the parties.

  1. Reporting: The Company shall provide Investor with quarterly financial reports within [00] days following the end of each fiscal quarter.

VI. Exit Strategy

  1. Term: This Agreement shall remain in effect until terminated in accordance with its terms or upon the occurrence of a mutually agreed-upon exit event.

  1. Exit Options: Investor shall have the option to exit their investment through a sale of their equity stake to a third party or through a buyback by the Company, subject to the terms and conditions negotiated at the time of exit.

VII. Miscellaneous Provisions

  1. Governing Law: This Agreement shall be governed by and construed in accordance with the laws of [State].

  1. Dispute Resolution: Any disputes arising out of or in connection with this Agreement shall be resolved through arbitration in accordance with the rules of [Arbitration Institution].

  1. Confidentiality: The parties agree to keep confidential all information exchanged in connection with this Agreement, except as required by law.

VIII. Signatures

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

[Your Name]

[Your Company Email]

[Date]

[Second Party]

[Date]

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