Equity Investment Agreement Template PDF
Equity Investment Agreement Template PDF
Equity Investment Agreement Template PDF
WHEREAS, Company would benefit from a relationship with Cornell and its
Kevin M. McGovern Family Center for Venture Development in the Life Sciences,
(the "McGovern Center"), whereby the McGovern Center would provide Company
with assistance in accessing elements of the McGovern Center's network of public
and private commercialization resources (the "McGovern Center Network"); and
(i) Provide Company with timely information that the McGovern Center
reasonably believes to be of benefit to Company including information related to
capital formation, license of office and/or laboratory space on or near the main
campus of Cornell, and various forms of public and private commercial and financial
assistance that may be available to Company;
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(iv) Feature Company as one of Cornell's "Equity Partners" in the
McGovern Center-related publicity, and permit Company to identify Cornell as an
"Equity Partner" in Company promotional or company background material.
Article 2. Consideration
(i) Within forty-five (45) days of the execution and delivery of this
Agreement Company agrees to issue to Cornell shares of Company voting common
stock ("Company Shares''), such number of Company Shares being equivalent to
____% of Company's currently issued and outstanding voting common stock on a
fully converted, fully diluted basis.
2.2 Within the time periods provided, Company shall deliver, or cause to
be delivered, to Cornell a certificate or certificates, registered in Cornell's name,
representing all of the Company Shares then required to be issued to Cornell.
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Article 3. Confidentiality
3.1 Each party acknowledges that the other party, its subsidiaries and
affiliated companies are the owners of valuable trade secrets and other confidential
information. Each party receiving (a "Party Recipient') information hereunder
concerning the business, products, equipment, systems, techniques, and practices
that is identified in writing as confidential ("Confidential Information") of the
disclosing party (the ''Disclosing Party"), for a period of five years commencing
upon first receipt of the particular Confidential Information (the "Confidentiality
Period") shall retain the same in confidence and shall only use such Confidential
Information for purposes of this Agreement, or as otherwise agreed to in writing by
both parties, and shall not disclose any such Confidential Information to any entity;
provided, that "Confidential Information" shall not include any information that: (a)
was already known to the Party Recipient prior to the date of this Agreement as
documented in Party Recipient's records made prior to such dates; (b) was publicly
available in its entirety as of the date of the disclosure or thereafter becomes
publicly available other than through breach of this Agreement; (c) is made known
to the Party Recipient by a third party who had not obtained the information
directly or indirectly from the Disclosing Party and does not obligate the Party
Recipient to hold the same in confidence; or (d) is mutually agreed in writing by the
parties to be non-confidential.
3.2 During the relevant Confidentiality Period, each Party Recipient shall
use its best efforts to safeguard the Confidential Information of the Disclosing Party,
using at least as great a degree of care as it uses to safeguard its own most
Confidential Information.
3.4 In the event that this Agreement is terminated, each Party Recipient
shall cease to use the Confidential Information of the other party, and will return all
originals and copies or extracts, summaries and the like made therefrom to the
Disclosing Party.
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Article 4. Term and Termination
4.1 The term of this Agreement shall commence upon the Effective Date
and shall continue for a period of five years, unless sooner terminated hereunder.
4.2 Either party may terminate this Agreement by prior written notice to
the other party. In the event of such termination, neither party shall be liable to the
other party for any failure to perform or for any additional payment hereunder, and
each party shall bear its own costs and expenses incurred prior to such termination.
4.3 In the event of Termination, all obligations of either party to the other
under this Agreement shall cease, other than (a) the obligation of Company to issue
Cornell all Shares required to be issued through the effective date of termination
under Section 2.2, (b) the obligations under Article 3, and (c) the indemnification
obligations of the parties set forth in Article 7. In the event that Cornell terminates
this Agreement prior to ________________________ then Cornell shall be obligated to
surrender to Company the number of Company Shares issued to Cornell pursuant to
Sections 2.1 (i) and 2.1 (ii) in the same proportion that the number of days that the
Agreement was terminated by Cornell prior to __________________ bears to the number
of days in the period from the date of this Agreement to _____________________. This
obligation to surrender Shares to Company shall not be effective in the event Cornell
terminates this Agreement as a result of Companys breach of any terms of this
Agreement.
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term hereof shall be consultative in nature and that Company shall not request
Cornell or the McGovern Center to, nor shall either of them, take any action or
perform any services such that they would be deemed to be a "broker" under any
relevant federal or state securities laws or regulations.
(i) Cornell is acquiring the Company Shares for its own account, for
investment, and not with a view to any resale or distribution thereof in any
transaction which would be in violation of federal or state securities laws or which
would require the issuance of such Company Shares to be registered under the
Securities Act of 1933, as amended (the "Securities Act"), subject, nevertheless, to
the disposition of Cornell's property being at all times within its control. Company
agrees to cooperate with Cornell in effecting such transfers in accordance with
terms and conditions intended to ensure compliance with applicable exemptions
from registration under the Securities Act, which will, among other things, require
the transferees to make representations and warranties and acknowledge
restrictions to Company similar to those made and acknowledged by Cornell to
Company in this Section 6.1.
(ii) Cornell understands and agrees that because the Company Shares to
be received by it pursuant to this Agreement have not been registered under the
Securities Act, Cornell cannot dispose of any or all of its Company Shares until such
Company Shares are subsequently registered under the Securities Act or an
exemption from such registration is available (e.g., Rule 144 under the Securities
Act). Cornell understands and agrees that each certificate representing such
Company Shares will bear the following legend or one substantially similar thereto:
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in Company Shares. Cornell is an "accredited investor" as such term is defined in
Rule 501 (a) promulgated under the Securities Act.
(iv) Cornell has been advised that the Company Shares to be received by it
pursuant to the transactions contemplated by this Agreement have not been
registered under the Securities Act or under the "blue sky" laws of any jurisdiction
and that Company, in issuing such Company Shares to Cornell pursuant to this
Agreement, is relying upon, among other things, the representations and warranties
of Cornell contained in this Section 6.1.
Article 7. Indemnification
7.1 Company shall, at all times during the term of this Agreement and
thereafter, indemnify, defend and hold harmless Cornell and its affiliates, and the
respective trustees, officers, employees, and agents of Cornell and its affiliates,
against all claims and expenses, including legal expenses and reasonable attorneys
fees, arising out of the death of or injury to any person or persons resulting from the
production, manufacture, sale, use, lease, consumption or advertisement of products
incorporating or making use of the technology, if any, assigned, licensed or
otherwise provided or made available to Company under this Agreement, unless
such claim or expense is due to the sole and direct negligence of Cornell. Further,
Company agrees to indemnify, defend and hold harmless Cornell and its trustees,
officers, employees, and agents from and against any and all losses, claims, damages,
liabilities or costs, as and when incurred, to which any such person may become
subject or which are asserted against any of them, directly or indirectly, in any way
related to Cornell's status as a shareholder of Company or any services provided by
Cornell pursuant to this Agreement; provided, however, that Company shall not be
liable under the foregoing indemnity agreement in respect of any liability to the
extent that such liability is found in a final judgment by a court of competent
jurisdiction, not subject to further appeal, to have resulted primarily from Cornell's
gross negligence or willful misconduct in the performance of its duties under this
Agreement. Cornell at all times reserves the right to select and retain its own
counsel, at its own expense, to represent Cornell's interests in any such action.
7.2 Neither party shall be liable to the other party for any indirect, special,
consequential or punitive damages whatsoever, whether grounded in tort
(including negligence), strict liability, contract or otherwise.
7.3 Company shall at all times comply in all material respects, through
insurance or self-insurance, with all statutory workers' compensation and
employers' liability requirements covering any and all employees with respect to
activities performed under this Agreement.
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7.4 Company warrants that it now maintains and will continue to
maintain liability insurance coverage that, based on industry experience, it believes
to be appropriate to the risk involved in its activities and operations.
8.1 Cornell shall have the right to participate in any sale of Company
Shares in the same proportion, and under the same terms, as apply to the sale of
Shares by any other owner of Company Shares.
8.2 Company represents, warrants and covenants that it shall have all
requisite authority to issue Cornell the Company Shares as provided herein, free and
clear of all liens, encumbrances and restrictions. Company represents that it has
provided Cornell with full and complete copies of any shareholder agreements or
other agreements among the shareholders of Company that in any way relate to the
ownership of Company Shares.
8.4 Cornell shall at any time, in its sole discretion, have the right to
withdraw as a shareholder of Company by assigning to Company, for no
consideration, all Shares then held by Cornell and Company shall accept this
assignment and withdrawal.
Except as expressly set forth herein, neither party may identify the other
party (or any affiliate thereof) in any promotional advertising or other promotional
materials to be disseminated to the public or any portion thereof or to use the name
of any staff member, employee, or student or any trademark, service mark, trade
name, or symbol or logo, or that is associated with it, without such other party's
prior written consent, which consent shall not be unreasonably withheld,
conditioned or delayed.
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or at such changed address as the party shall have specified by written notice,
provided that any notice of change of address shall be effective only upon actual
receipt.
Lou Walcer
Director
The Kevin M. McGovern Family Center for
Venture Development in the Life Sciences.
Cornell University
Weill Hall Room 405
526 Campus Road
Ithaca, NY 14850
John Carberry
Director
Cornell University Press Relations Office
607-255-6074
[email protected]
After hours: 607-216-7724
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If from Cornell to Company:
12.1 The parties shall attempt in good faith to resolve any dispute arising
out of or relating to this Agreement promptly by negotiations between officials of
each party who have authority to settle the controversy.
12.2 If the matter has not been resolved by negotiation within thirty (30)
days, the parties shall attempt in good faith to settle the dispute by mediation in
Ithaca, New York.
12.3 If the matter has not been resolved by mediation within ninety (90)
days of the initiation of such procedure, or if either party will not participate in
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mediation, then the parties may pursue all legal and equitable rights. Venue for any
such proceeding shall be in the state or federal courts serving Tompkins County,
New York.
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IN WITNESS WHEREOF, authorized representatives of the parties hereto
have executed this Equity Investment Agreement as of the Effective Date.
By: _____________________________________________
Name:
Title:
For Company:
By: ____________________________________________
Name:
Title:
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