Cornerstone Investment Agreement Template for South Africa

1. Anti-dilution Rights: Protection for the investor against future dilution of shareholding, included when specifically negotiated

2. Board Representation: Rights of the investor to appoint directors, included when the investment size warrants board participation

3. Tag-Along Rights: Right to participate in future sales of shares by other shareholders, included for minority protection

4. Pre-emptive Rights: Right to participate in future share issues, included when ongoing investment rights are negotiated

5. B-BBEE Provisions: Specific provisions relating to B-BBEE compliance and requirements, included when relevant to the transaction structure

6. Foreign Investment Provisions: Additional provisions for compliance with exchange control regulations, included for foreign investors

7. IPO-specific Provisions: Additional terms specific to investments contingent on an IPO, included for pre-IPO investments

1. Company Information: Detailed corporate information including share capital structure and subsidiaries

2. Warranties: Detailed warranties given by the Company and/or other parties

3. Completion Requirements: Detailed list of documents and actions required for completion

4. Conditions Precedent: Detailed list of all conditions precedent and required evidence of satisfaction

5. Subscription Shares Details: Detailed description of the shares being issued including rights and restrictions

6. Required Regulatory Approvals: List of required regulatory approvals and status

7. Disclosure Schedule: Exceptions and qualifications to the warranties

8. Form of Completion Certificate: Template certificate confirming satisfaction of conditions precedent

9. Form of Board Resolutions: Template board resolutions required for completion