EQUITY PARTNERSHIP AGREEMENT
This Equity Partnership Agreement (hereinafter referred to as the “Agreement”) is
made on __________________20___ Between _________________ (hereinafter
referred to as “Partner A”), _____________________ (hereinafter referred to as
“Partner B”) and ______________ (hereinafter referred to as “Partner C”). Together
referred to as the “Equity Partners” and/or “Parties”.
1. Location.
The Parties hereby agree to form a partnership with them being Equity Partners to
operate a business known as ___________________.
The principal office of the business shall be at _____________________________.
2. Term.
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.
3. Investment.
The Equity Partners herein agree that to start the partnership, all parties shall
contribute an investment amount of __________ being the starting capital.
Parties herein agree that the investment amount shall be paid on or before
_________ to the opened bank account for the partnership.
4. Share.
The parties herein agree that the partnership shall be owned in the following ratio; –
Partner A – ___% equity.
Partner B – ___% equity.
Partner C – ___% equity.
5. 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.
6. Salaries.
Parties herein agree that every partner will be on a deciding salary and that salary
will be based on the bottom-line sales.
Parties agree that each owner is allowed to change salary as long as the others are
ok with it and should be in the ratio of ___:___:___.
7. Banking.
All partnership funds shall be deposited in its name in such checking accounts or
accounts designated by the partners. All withdrawals are to be made upon checks
signed by either partner.
8. 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:
a. To pay or provide for the payment of all partnership liabilities and liquidating
expenses and obligations;
b. To equalize the income accounts of the partners;
c. To discharge the balance of the income accounts of the partners;
d. To equalize the capital accounts of the partners; and
e. To discharge the balance of the capital accounts of the partners.
The partnership may also be terminated in the following events;
i. When one of the partners is found to be stealing from the business
ii. 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.
9. Death.
Upon the death of either partner or in the event of a dissolution of the partnership,
the surviving partners shall have the right to purchase the deceased’s interest in the
partnership, terminate or liquidate the partnership business, or buy out the other
partners in the business.
10. 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.
11. Governing Law.
This Agreement shall be construed, governed, interpreted, and applied according to
the Laws of __________ where the business shall be located.
Parties further agree that any significant legal decisions shall be subjected to a vote
amongst the partners.
12. Waiver.
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.
13. Severability.
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:
a. The invalid or unenforceable provision(s) will be modified to the minimum
extent necessary to make such provision(s) valid and enforceable; or
b. 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.
14. 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 Partner A; –
Signature:
__________________________
Date:
______________________________
Email Address:
_____________________
Signed by Partner C; –
Signature:
__________________________
Date:
______________________________
Email Address:
Signed by Partner B; –
Signature:
__________________________
Date:
_______________________________
Email Address:
_____________________
_____________________