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The Parties also include their affiliations, associates, agents, officers, directors, management
members, affiliates, subsidiaries, partners, individuals, assigns, designees, employees,
contractors, consultants, sub-contractors and/or representatives, collectively or individually
referred to as “Affiliates” herein.
RECITALS
WHEREAS, Party 1 has the knowledge & experience of real estate project development and
WHEREAS, Party 2 is an Investment and is willing to Invest in Party 1’s project with the agreement
and understanding that Party 1 will share guaranteed returns against the invested amount; and
NOW, THEREFORE, in consideration of the mutual covenants made and exchanged among
them, the Parties agree as follows:
1.0. RECITALS
Each of the RECITALS above is true and correct and together form the basis for this
AGREEMENT. The RECITALS are incorporated herein by reference and provide the substantive
AGREEMENT among the Parties.
These transactions are based on sales purchase agreement and fall under the governance of the
state & central governments. Party 2 is not registered with the Registrar of Companies as Builders
& Developers. Any investment agreement made between Party 2 and Party 1 are merely for the
mutual interest and benefit of both the parties involved.
3.0. OBJECTIVES
The objectives of this AGREEMENT are that all Parties are ready, willing and able to cooperate
and work together for mutual benefit. The cooperation will be in the spirit of good faith, fairness,
and trust each using its best efforts to complete the objectives.
4.1. It is the intention of Parties1 and Parties 2 that this be a binding commitment, subject to terms
and conditions as set out in this formal INVESTMENT AGREEMENT which all Parties enter into
and hereby sign below thus expressing explicit acceptance of these terms and conditions.
4.2. All Parties agree to keep the finding and/or any information pertaining to the subject strictly
confidential and not to circumvent each other for contacts and/or companies introduced or in any
other manner.
4.3. All Parties agree to deal with each other in a sincere and straightforward manner, to establish
a long-standing relationship, and to endeavor to protect their mutual interests under this
AGREEMENT.
6.1. Party 2 – Party 2 is a sophisticated investor and has shown interest to invest in Party 1’s real
estate project at ……., however it doesn’t have any expertise in Real Estate transactions,
construction activities & development of project/s. Party 1 has a reputed real estate project ……..
located in ………… spanned on …….. acres of land …….. divided in ….. Phases. Party 1 has
been actively involved in the completion of the Phase 1 of the project and is looking for Investors.
Party 1 is responsible for completing the project on a timely basis and to handover the possession
to the customers.
6.2. Party 2 – Under the terms of this AGREEMENT, Party 2’s sole responsibility will be to infuse
funds in the project as agreed hereto. Party 2 will invest an amount of Rs. …….. (Rupees
………………………… Only) …………….. in Party 1’s project ……………... No representations
or warranties are made by Party 1 to Party 2 regarding the performance of the Transaction. Any
discussion of possible returns has been based on past performance of similar Transaction/s or
based on market study or statistics and may not be an accurate indicator of future returns.
7.1. Compensation: This AGREEMENT shall be taken as Party 1’s irrevocable pay order to pay
a total of Rs. …………. (Rupees ………………….. Only) as TOTAL NET RETURNS INCLUDING
PRINCIPLE to Party 2 against its investment. Party 1 will guarantee the investment amount by
issuing Allotment Letter of Land Parcels (Plots) of equivalent value to Party 2 (as mentioned in
ANNEXURE A). Party 2 will simultaneously issue No Objection Letter to Party 1 to sell such plots
to interested Investors or Customers and it is mutually agreed that the Payments received in the
mode of down payment from the Customers shall be transferred to Party 2 immediately upon
each and every sale.
7.2. Payment Terms: Parties further agrees that the returns are compensation for risk involved
and are irrevocable, irretrievable and unconditionally guaranteed to be paid simultaneously with
the payment of each and every down payment referred to in this AGREEMENT. The Payments
will be free of legal impediment and free of any deductions (except government deductions as
appropriate), excluding bank transfer fees and routine banking delays, for this and all subsequent
transactions.
8.0. CLAIMS
By this AGREEMENT, Party 2 claims no interest whatsoever in the assets or other income of
Party 1. The assets of Party 1 will remain the sole and exclusive property of Party 1 for the
duration of this AGREEMENT.
This agreement shall remain an intricate part of the contract between the Parties. This pay order
shall remain in effect throughout the life of this transaction in perpetuity or until it is expired or
terminated.
However, returns shall continue to be earned with any renewals, rolls, extensions and additions
which may extend the Transaction beyond the original expiration date.
10.0. TERMINATION
This AGREEMENT shall be effective as of the date the final signature has been executed in the
AGREEMENT, and may be terminated:
10.1. For cause by any Party without liability or obligation by submitting a letter of cause to the
other Parties identifying the failure to meet obligations as set forth in the AGREEMENT.
Termination for cause will include but is not limited to: failure to generate required funding,
bankruptcy, insolvency, misrepresentation, criminal acts, falsification of records, breaking of
confidentiality, or involvement in any other activities that may discredit the character of the other
Party;
15.0. CONFIDENTIALITY
The information contained in this AGREEMENT and any other information exchanged is
considered to be confidential and is not to be publicly released or divulged by the Parties to any
third party without the express written permission of the other Parties. No Party will attempt to
circumvent the other Parties by contacting any person, company or entity introduced to them by
the introducing Party, or any of the other Party's customers, Party 1’s, consultants, agents or the
like, anywhere in the world without the expressed authority of, and in the interest of all Parties.
Each of the Parties agrees to use such information and documentation solely for the purposes of
this AGREEMENT and for no other reason and shall disseminate such information and
documentation only to those persons whose duties justify their need to know and none other. The
standards and rules of the Indian Penal Code are deemed to be included in this AGREEMENT
by reference.
16.0. ASSIGNMENT
This AGREEMENT is unconditional, assignable, transferable, and divisible. This “AGREEMENT
shall inure to the benefit of Party 2 and their respective heirs, administrators, successors and
assigns as the case may be, until this transaction, including any renewals, extensions and
additions are fully completed.
20.0. TAXES
For purposes of this AGREEMENT, each of the Parties will be responsible for its own income tax
liability and for any other government liability arising from receipt of its share of the profits
generated by the Transaction and distributed under the terms of the AGREEMENT.
21.0. LANGUAGE
The language of this AGREEMENT and all legal correspondence shall be in English.
22.0. HEADINGS
The headings in the AGREEMENT are for convenience only and are not to be used in construing
the meaning of Sections herein.
23.0. ENTIRE AGREEMENT:
This AGREEMENT constitutes the entire understanding among the Parties concerning the subject
matter hereof and any and all prior negotiations, understandings, representations and
communications, whether oral or written, between the Parties are merged into this AGREEMENT.
This AGREEMENT may be changed by a written amendment duly signed by authorized
representatives of each and all Parties.
Each Party will reimburse each Indemnified Person for all expenses (including reasonable fees
and disbursements of counsel) as they are incurred by such Indemnified Person in connection
with investigating, preparing for or defending any action, claim or proceeding (“Action”) referred
to above (or enforcing this AGREEMENT or any related engagement AGREEMENT), whether or
not in connection with pending or threatened litigation in which any Indemnified Person is a Party.
Each Party further agrees that the other Party will not settle or compromise or consent to the entry
of any judgement in any pending or threatened action in respect of which indemnification may be
sought hereunder (whether or not an Indemnified Person is a Party therein) unless a Party has
given the other Party reasonable prior written notice thereof and used all reasonable efforts, after
consultation with the other Party, to obtain an unconditional release of each Indemnified Person
from all liability arising there from.
Each Party’s obligations hereunder shall be in addition to any rights that any Indemnified Person
may have at common law or otherwise. Each Party acknowledges that in connection with the
engagement Party 1 is acting as an independent developer with duties owing solely to Party 2.
26.0. COUNTERPARTS
This AGREEMENT may be executed in one or more counterparts by hard copy signatures and/or
signatures on facsimile copies or copies transmitted by email, each of which shall be deemed an
original, and said counterparts shall together constitute but one and the same AGREEMENT,
binding upon the Parties, notwithstanding that the Parties are not signatory to the original or the
same counterparts.
Each of the Parties agrees to execute such further papers and/or documents as shall be
necessary and proper in order to fulfill the terms and conditions of this AGREEMENT.
……………………………….. INVESTOR
………………………………... ………………………………
NAME PARTY 1 NAME PARTY 2