Severability: It is agreed that if a provision of this contract is invalidated, unenforceable and illegal, that provision does not affect other provisions in any way. When a company raises its capital through securities-issuing shares, it generally enters into the share and shareholder purchase agreement with the company`s investors. Whenever a company intends to raise its capital by selling the shares of the current promoters of the company, it enters into a share purchase agreement. The main objective of the share purchase agreement is a firm commitment to underwriting shares and a clear agreement with shareholders. The share subscription contract defines the investment mechanisms that the investor takes in the company. It requires the parties to complete the investment process. Conditions may be favourable to investors. One of the alternatives to the stock subscription is the stock subscription, which defines the most important conditions, but does not contain the guarantees of the company or the founder. Startups will be happy to check if they need this agreement or to share a subscription letter. Sustainability: Any obligation of the action agreement is treated as a separate obligation and can be implemented several times.
Amendments and waivers: It is agreed that, for the duration of the agreement, none of the conditions will be considered to be set aside by an act of the parties In the event of a dispute between the parties over the interpretation of this agreement or an omission or violation of either party, these issues or disputed situations are ultimately governed by an arbitration procedure : – Anti-dilution duties provide for an adjustment of the investor`s participation when new shares are issued to a third party with a valuation lower than the one to which the investor has invested. They will only be triggered when the company`s valuation has fallen during a subsequent funding cycle, called a down-round. Let`s understand that by an example. Consider a company that holds a total of 500 issued shares of the face value of Rs.10. Of the 500 shares, one investor subscribed 100 shares at 60 Rs. per share and valued the company`s shares with 500x 60 – Rs 30,000. Whenever a company seeks additional investment through equity, it has two options: either it sells its share to an investor or it issues new shares to investors. When a company issues new shares, the consideration for these shares is on the company`s account, while when a founder sells his share, the consideration for those shares is on the founder`s account.