This Equity Partnership Agreement (hereinafter referred to as the “Agreement”) is made on __________________XXX___ Between _________________ (hereinafter referred to as “Partnership”) and ______________ (hereinafter referred to as “Minority Partner”). Together referred to as the “Parties”.
The purpose of this agreement is for the Minority Partner to join the partnership by agreement of the existing three (3) partners and in compliance with the terms agreed to in this agreement.
The partnership shall begin on the date signed by the parties below (hereinafter referred to as the “Effective Date”) and continue indefinitely unless otherwise terminated or the business ceases to exist.
The Minority Partner herein agrees to contribute an investment amount of __________ being the capital to join the partnership.
Parties herein agree that the investment amount shall be paid on or before _________ to the bank account for the partnership.
The parties herein agree that the minority partner shall own _____ of the partnership.
- Roles.
The agreed roles for the minority partner shall be; –
- ………………………………..
- ……………………………….
- Profit and Loss.
The partnership’s net profits shall be divided according to the ratios shared between the partners, and the net losses shall be borne similarly.
- Banking.
All partnership funds shall be deposited in its name in such checking accounts or accounts. The minority partner shall not have access to the bank accounts but shall receive account statements upon reasonable request.
- Intellectual Property.
The parties herein agree that for all intellectual property that will be developed in the future, the partners hereby agree to jointly share the ownership.
- Termination.
The partnership may be dissolved at any time by agreement of the partners, in which the partners shall proceed with reasonable promptness to liquidate the partnership’s business.
The assets of the partnership business shall be used and distributed in the following order:
- To pay or provide for the payment of all partnership liabilities and liquidating expenses and obligations;
- To equalize the income accounts of the partners;
- To discharge the balance of the income accounts of the partners;
- To equalize the capital accounts of the partners; and
- To discharge the balance of the capital accounts of the partners.
The partnership may also be terminated in the following events;
- When one of the partners is found to be stealing from the business
- When one of the partners does not pay the rent and utilities on time
The partnership will be dissolved in case of any of the above-mentioned circumstances.
- Exit.
In the event, the minority partner decides to leave his/her assigned role and respective duties, their _____% share will be diluted and be held in the business for future growth and talent acquisition
- Dispute Resolution.
Any controversy or claim arising out of or relating to this Agreement, or the breach thereof, shall be settled by arbitration in accordance with the applicable rules, and judgment upon the award rendered may be entered in any court having jurisdiction thereof.
- Governing Law.
This Agreement shall be construed, governed, interpreted, and applied according to the Laws of __________ where the business shall be located.
The waiver by either party of the breach of any covenant or provision in this Agreement shall not operate or be construed as a waiver of any subsequent breach by either party.
In the event a court of competent jurisdiction declares any term or provision of this Agreement to be invalid or unenforceable for any reason, this Agreement will remain in full force and effect and either:
- The invalid or unenforceable provision(s) will be modified to the minimum extent necessary to make such provision(s) valid and enforceable; or
- If such a modification is not possible, this Agreement will be interpreted as if such invalid or unenforceable provision(s) were not a part of this Agreement.
- Amendment of Agreement.
This agreement cannot be amended without the written consent of all partners.
IN WITNESS WHEREOF, the partners hereunto set their signatures and acknowledged this Agreement as the date first above written.
| Signed by the Partnership; –Signature: __________________________
Date: ______________________________ Email Address: _____________________ |
Signed by the Minority Partner; –Signature: __________________________
Date: _______________________________ Email Address: _____________________ |
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