BUSINESS EQUITY AGREEMENT.

mukiialice64
Samples legal papers
March 18, 2023

BUSINESS EQUITY AGREEMENT.

This Business Equity Agreement (hereinafter referred to as the “Agreement”) is made and entered on this ____ day of _____ 2021 (the “Effective Date”), between _________________, Contact Info:  _____________ (hereinafter referred to as the “Company”), and _________________, Contact Info: __________________ (herein referred to as the “Investor”).

WHEREAS, the Investor herein is an independent entity, investing into an already existing business entity for the purpose of owning a percent of the business.

NOW THEREOF, in consideration of the mutual covenants and promises made by the Parties hereto, the Parties covenant and agree as follows:

  1. TERM.

The initial term of this Agreement shall be for a period _____ [Years/Month], commencing on the Effective Date herein, and an additional ______ [year/month] callback period.

  • CONDITION.
    • The Investor shall invest One Hundred Thousand Dollars ($100,000) in the Company for a 25% equity share.
    • The Investor shall make the money available to the Company in one drawing only to the Bank Account provided by the Company. (The Company shall provide the Investor with the official banking details).  Additionally, other Investor’s obligations will include the following;
  • ___________________________________________________________
  • ___________________________________________________________
  • ___________________________________________________________
    • Callback option [if any].
  • The Investor’s equity shall be with a buyout option. The Company shall pay the Investor 25% of the Company’s profits, quarterly each trade year.
  • Once the Investor receives 100% return of the investment, the buyout shall be automatic.
    • Equity dilution.

The Parties agree that incase the Company makes losses or is declared bankrupt, the equity covered under this Agreement shall automatically be dissolved with no legal consequences to the Company. The Investor understands the risks involves in running a business and as such acknowledges that there is a risk of losses and dissolution of the business.

  • PURPOSE.

The Company shall use the money invested by the Investor for the purpose covered in this Agreement or for any other purpose as will be approved by the Investor in writing. The Investor can hold the Company legally liable if the investment is used for purposes other than those covered under this Agreement.

  • WAIVER AND ASSIGNMENT.
    • The waiver by either Party of any breach or failure to enforce any of the terms and conditions of this Agreement at any time shall NOT in any way affect, limit, or waive such party’s right thereafter to enforce and compel strict compliance with every term and condition of this Agreement.  
    • No Party shall assign its rights or obligations under this Agreement without prior Notice or consent by the other Party.
  • WARRANTIES AND REPRESENTATION.
    • The Parties each represents and warrants that he/she is NOT party to any other agreement that would restrict such Equity Agreement.
    • Each Party represents and warrants that, for the purpose of this Agreement, no third party can claim any rights to any intellectual property or other proprietary rights possessed by the said Party as it relates to the Business concept covered by this Agreement.
  • CONFIDENTIALITY.

The Parties agree to keep details of this Agreement and any other confidential information about the business covered under this Agreement and the dealings of the Company confidential. The Investor will not use the said information without prior written consent by the Company except;

  • The information is required by law.
  • The information is already in the public domain.
  • NON-COMPETITION.

The Investor undertakes that they shall not, at any time after separation from the Company:

  1. Engage in any trade or business or be associated with any person, firm or entity engaged in any trade or business using the name, title or description associated with the Company.
  2. In the course of carrying on any trade or business, claim or represent or otherwise indicate any association with the Company.
  3. LIABILITY.

The Investor shall NOT hold the Company liable in the unfortunate event that the Company makes losses or is declared bankrupt.

  • DISPUTE RESOLUTION.

In the event of disputes arising about the execution of this Agreement and/or performance of obligations stated herein, the Parties shall solve such issues through a mediation process in accordance with the ADR regulations of New South Wales, Australia.

  1. TERMINATION/CANCELLATION.

Any Party can, at any time, terminate/cancel this Agreement by issuing the other Party with a written ______ day termination/cancellation Notice. In the event that the Company cancels/terminates this Agreement after receiving the investment but before using it, they shall make a full refund of the money within ____ Days after issuing the Notice. In the event that the Company cancels/terminates this Agreement after using investment, they shall commit to repaying any amount due within _____ Days after issuing the Notice.

  1. MODIFICATIONS.

This Agreement contains the entire Agreement between the Parties relating to the subject matter hereof and supersedes any and all prior agreements or understandings, written or oral, between the parties related to the subject matter hereof.  No modification of this Agreement shall be valid unless made in writing and signed by both parties hereto.

  1. GOVERNING LAW AND JURISDICTION.

This Agreement shall be governed by and construed in accordance with the laws of New South Wales, Australia and any International Trade laws as shall be applicable. Exclusive jurisdiction and venue shall be in New South Wales, Australia.

Each party represents and warrants to the other that such party has acted in good faith, and agrees to continue to so act, in the negotiation, execution, delivery, performance, and any termination of this Agreement.

IN WITNESS WHEREOF, this Agreement has been executed by the parties as of the Effective Date.

COMPANY: _____________       _____________________________         ________________

                        (SIGNATURE)                  (NAME)                                                (DATE)

INVESTOR: _____________            ____________________________             _______________

                        (SIGNATURE)                               (NAME)                                        (DATE)

At Legal writing experts, we would be happy to assist in preparing any legal document you need. We are international lawyers and attorneys with significant experience in legal drafting, Commercial-Corporate practice and consulting. In the last few years, we have successfully undertaken similar assignments for clients from different jurisdictions. If given this opportunity, The LegalPen will be able to prepare the legal document within the shortest time possible. You can send us your quick enquiry ( here )