Free Small Business Investment Contract

This Small Business Investment Contract ("Contract") is made and entered into as of the date below, by and between [YOUR COMPANY NAME], hereinafter referred to as the "Investor," and Sophie Fadel, hereinafter referred to as the "Business Owner," collectively referred to as the "Parties."

I. DEFINITIONS

For the purposes of this Contract, the following terms shall have the following meanings:

• "Investment Amount": The total amount of money invested by the Investor in the Business.

• "Business": The business operated by the Business Owner, specifically identified as Fadel's Boutique.

• "Shares": The equity or ownership interest in the Business to be granted to the Investor in exchange for the Investment Amount.

II. INVESTMENT TERMS

1. Investment Amount: The Investor agrees to provide the Business Owner with an investment of $500,000.

2. Payment Method: The Investment Amount will be paid via bank transfer on or before March 15, 2072.

3. Equity Ownership: In exchange for the Investment Amount, the Business Owner agrees to grant the Investor an ownership interest of 25% in the Business, represented by 2,500 Shares.

4. Use of Funds: The Business Owner agrees to use the Investment Amount solely for the purposes of expanding the boutique’s product line, enhancing marketing efforts, and increasing inventory for the upcoming fashion season.

III. RIGHTS AND OBLIGATIONS OF THE PARTIES

1. Investor's Rights:

   • The Investor will be entitled to receive dividends as per the distribution policy of the Business.

   • The Investor may inspect the books and records of the Business at reasonable times.

   • The Investor shall have the right to vote on major business decisions, as outlined in the Business’s bylaws.

2. Business Owner’s Obligations:

   • The Business Owner shall operate the Business in a sound and prudent manner, in accordance with applicable laws and regulations.

   • The Business Owner will provide the Investor with quarterly financial reports.

   • The Business Owner agrees to notify the Investor of any major changes or developments that could impact the Business or the Investor’s interest.

IV. TERM OF THE AGREEMENT

This Contract will remain in effect until the Investor has divested their ownership interest in the Business, or until terminated by mutual agreement of the Parties. The Business Owner agrees to provide written notice of any intent to terminate this Contract to the Investor at least 60 days prior to the proposed termination date.

V. DIVESTMENT AND EXIT STRATEGY

1. Buyout Option: The Business Owner may, at any time, offer to buy back the Investor’s Shares at a fair market value, as determined by an independent appraiser.

2. Sale of Business: In the event that the Business is sold, the Investor will be entitled to a portion of the proceeds based on their equity ownership.

VI. CONFIDENTIALITY

The Parties agree to maintain the confidentiality of any proprietary or sensitive information disclosed during the term of this Contract. This obligation shall survive the termination of the Contract.

VII. DISPUTE RESOLUTION

In the event of a dispute between the Parties, the dispute shall be resolved through mediation in Washington, and in accordance with the rules of the American Arbitration Association. The decision of the mediator shall be binding upon both Parties.

VIII. REPRESENTATIONS AND WARRANTIES

1. Investor’s Representation: The Investor represents that they have the financial capacity to make the Investment Amount and that this investment is made based on their own research and judgment.

2. Business Owner’s Representation: The Business Owner represents that the Business is in good standing and that all necessary licenses and permissions have been obtained for the operation of the Business.

IX. MISCELLANEOUS

1. Governing Law: This Contract shall be governed by and construed in accordance with the laws of the state of Washington.

2. Entire Agreement: This Contract constitutes the entire agreement between the Parties and supersedes all prior agreements or understandings, whether written or oral.

3. Amendments: Any amendments to this Contract must be made in writing and signed by both Parties.

X. EXECUTION

This Contract is executed as of the March 15, 2072 by the undersigned:

[YOUR NAME], [YOUR COMPANY NAME]

Investor

Sophie Fadel

Business Owner

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