[{"data":1,"prerenderedAt":529},["ShallowReactive",2],{"document-shared-equity-agreement-D12875":3},{"document":4,"label":23,"preview":11,"thumb":24,"thumb600":25,"description":5,"descriptionCustom":6,"apiDescription":5,"pages":8,"extension":10,"parents":26,"breadcrumb":30,"related":36,"customDescModule":176,"customdescription":6,"mdFm":177,"mdProseHtml":528},{"description":5,"descriptionCustom":6,"label":7,"pages":8,"size":9,"extension":10,"preview":11,"thumb":12,"svgFrame":13,"seoMetadata":14,"parents":16,"keywords":15},"SHARED EQUITY AGREEMENT This Shared Equity Agreement (the \"Agreement\") is effective [DATE], BETWEEN: [YOUR NAME] (the \"Occupant\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE] with its address located at: [YOUR COMPLETE ADDRESS] AND: [SECOND PARTY NAME] (the \"Co-Owner \"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its address located at: [COMPLETE ADDRESS] WHEREAS the Occupant and the Co-Owner will each pay a portion of the down payment. The Occupant will use the Property as a home and pay one hundred percent (100%) of the mortgage, property tax, and other expenses associated with ownership after purchase. WHEREAS the Co-Owner plans to co-own the Property for a term of [INSERT NUMBER OF YEARS UNTIL SALE OR BUYOUT]. At the end of the Co-ownership term, the Occupant may buy out the Co-Owner. If the Occupant chooses not to do so, the Co-Owner can buy out the Occupant, or the Property will be sold, and the proceeds shared as described in this Agreement. For their protection and security, the Co-Owners have prepared this Agreement to describe their rights and responsibilities in detail, and to bind each of them to fulfill their promises. NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS: DEFINITIONS \"Designated Party\" is defined in Section 2.2. \"Equity Sharing Association\" means all of the Co-Owners collectively. \"Equity Sharing Percentage\" means the percentage to be used for the allocation of certain expenses and proceeds as described in this Agreement. The Co-Owner's Equity Sharing Percentage is [insert percentage], and the Occupant's Equity Sharing Percentage is [insert percentage]. \"Group\" means a group of Parties who together constitute one (1) Co-Owner and who together hold one (1) Co-Ownership Share. \"Party\" means an owner of any interest in the Property during the term of this Agreement, and any current or future signatory to this Agreement. \"Promptly\" means within three (3) calendar days of the event triggering the requirement to act. \"Property\" means the real property commonly known as [insert address of property to be co-owned]. ORGANIZATIONAL MATTERS Organizational Structure The Equity Sharing Association is intended to be an unincorporated association under the laws of the state where the Property is located. The Equity Sharing Association shall not hold title to the Property or to any other real or personal property, rather, title to the Property and to all personal property associated with it, shall be held by one or more of the Parties, subject to the provisions of this Agreement. The Equity Sharing Association shall be empowered to contract for goods and services, as authorized by this Agreement, and perform such other functions on behalf of the Parties as are reasonably necessary to operate the Property and accomplish the purposes of this Agreement, in instances where doing so in the name of all of the Parties would be impossible, impractical or inefficient. This Agreement is not intended to create a partnership, joint venture, or subdivision. Except as specifically provided in this Agreement, no Party is authorized to act as agent for or on behalf of any other Party, to do any act which would be binding on any other Party, or to incur any expenditures with respect to the Property except as specifically provided in this Agreement. Notwithstanding anything to the contrary in this Agreement, any Co-Owner may act on behalf of the Equity Sharing Association to enforce the mandatory provisions of this Agreement without an affirmative authorization or vote by the Equity Sharing Association. An affirmative vote of the Equity Sharing Association shall be required for any action by or on behalf of the Equity Sharing Association that does not involve the enforcement of a mandatory provision of this Agreement. Co-Ownership Shares and Co-Owners The Parties wish to allocate ownership and control of the Property into exactly two (2) discrete Shares, to be referred to in this Agreement as \"Co-Ownership Shares\". A Co-Ownership Share may be owned by an individual, an entity or a Group. The owner of a Co-Ownership Share shall be collectively referred to as a \"Co-Owner.\" If a Group owns a Co-Ownership Share, the following provisions shall apply: (i) The Group, collectively, shall be referred to as one (1) Co-Owner; (ii) Each Party within the Group shall be jointly and severally liable for all obligations and responsibilities associated with such Co-Ownership Share; (iii) Except as provided in Subsection 2.2.3, all rights associated with such Co-Ownership Share shall be deemed jointly held by the Parties within the Group, and, absent a written agreement or provision of law to the contrary, all such Parties shall be deemed to have equal control of such rights; and (iv) Any act or omission by one (1) of the Parties within such Group shall be deemed the act or omission of the Group. At all times, each Co-Ownership Share shall have exactly one (1) natural person acting as the Designated Party for such Co-Ownership Share. The initial Designated Party for each Co-Ownership Share shall be specified by the Co-Owner at the time he/she/it first executes this Agreement. Thereafter, the identity of the Designated Party may be changed (i) for a period of thirty (30) days following a transfer of any part of the Co-Ownership Share, and (ii) on one (1) occasion during each Annual Usage Cycle. Any Group which is a Co-Owner, and any entity which is a Party, must (i) disclose to all Parties the full legal names of each person or entity with any ownership interest in the Group or entity, (ii) immediately provide Notice to all Parties each time there is an addition, subtraction or other change to the list of full legal names of each person or entity with any ownership interest in the Group or entity, and (iii) upon Notice so requesting from any Party, obtain the signature of any such person or entity on a document guaranteeing the obligations of such Group or entity under the terms of this Agreement. General Presumptions Regarding Allocations The Parties wish to allocate all costs, obligations, benefits and rights associated with ownership of the Property as provided in this Agreement. They intend that the allocations described in this Agreement shall supersede any presumptions regarding such matters which might otherwise arise as a result of: (i) the price paid by a Party for his/her interest in the Property, (ii) the manner in which title to the Property is held, (iii) the acts or omissions of the Parties in relation to the Property, or (iv) the provisions of any other document executed by the Parties. USE OF THE PROPERTY Right and Obligation to Occupy The Occupant shall have the exclusive right to occupy the Property for so long as he/she continues to adhere to the terms and conditions of this Agreement. This right is derived solely from the provisions of this Agreement, which shall be considered the Occupant's lease. The Co-Owner may terminate the lease in the event of a Default by the Occupant. All Co-Owners expressly relinquish all rights to occupy the Property that might otherwise arise presumptively or by operation of law as a result of their ownership interests in the Property. The Occupant recognizes that his/her right to occupy the Property may be terminated, notwithstanding his/her ownership interest in the Property. So long as the Occupant shall have the exclusive right to occupy the Property under this Agreement, he/she shall use the Property as his/her principal residence unless the Co-Owner otherwise consents. The Occupant must request such consent in a Notice given in advance. The Co-Owner may, at his/her sole discretion, refuse such consent, in which case the Co-Owner may terminate the Co-ownership as described in this Agreement.",null,"Shared Equity Agreement","15",513,"doc","https://templates.business-in-a-box.com/imgs/1000px/shared-equity-agreement-D12875.png","https://templates.business-in-a-box.com/imgs/250px/12875.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#12875.xml",{"title":15,"description":6},"shared equity agreement",[17,20],{"label":18,"url":19},"Legal Agreements","/templates/business-legal-agreements/",{"label":21,"url":22},"Purchase & Sale Agreements","/templates/purchase-sale-agreement/","Shared Equity Agreement Template","https://templates.business-in-a-box.com/imgs/400px/12875.png","https://templates.business-in-a-box.com/imgs/600px/12875.png",[27,17,20],{"label":28,"url":29},"Templates","/templates/",[31,32,33],{"label":28,"url":29},{"label":18,"url":19},{"label":34,"url":35},"Equity & Mergers","/templates/equity-and-mergers/",[37,41,45,49,53,57,61,65,69,73,77,81,85,101,115,128,146,161],{"label":38,"url":39,"thumb":40,"extension":10},"Phantom Equity Agreement","/template/phantom-equity-agreement-D14030","https://templates.business-in-a-box.com/imgs/250px/14030.png",{"label":42,"url":43,"thumb":44,"extension":10},"Equity Distribution Agreement","/template/equity-distribution-agreement-D13266","https://templates.business-in-a-box.com/imgs/250px/13266.png",{"label":46,"url":47,"thumb":48,"extension":10},"Simple Agreement For Future Equity Safe","/template/simple-agreement-for-future-equity-safe-D13395","https://templates.business-in-a-box.com/imgs/250px/13395.png",{"label":50,"url":51,"thumb":52,"extension":10},"Equity Participation Plan","/template/equity-participation-plan-D13012","https://templates.business-in-a-box.com/imgs/250px/13012.png",{"label":54,"url":55,"thumb":56,"extension":10},"Diversity Equity and Inclusion Policy","/template/diversity-equity-and-inclusion-policy-D13330","https://templates.business-in-a-box.com/imgs/250px/13330.png",{"label":58,"url":59,"thumb":60,"extension":10},"Equity Accumulation Plan","/template/equity-accumulation-plan-D13223","https://templates.business-in-a-box.com/imgs/250px/13223.png",{"label":62,"url":63,"thumb":64,"extension":10},"Equity Incentive Plan","/template/equity-incentive-plan-D13224","https://templates.business-in-a-box.com/imgs/250px/13224.png",{"label":66,"url":67,"thumb":68,"extension":10},"Stock Agreement","/template/stock-agreement-D347","https://templates.business-in-a-box.com/imgs/250px/347.png",{"label":70,"url":71,"thumb":72,"extension":10},"Letter of Request for an Equity Investment","/template/letter-of-request-for-an-equity-investment-D471","https://templates.business-in-a-box.com/imgs/250px/471.png",{"label":74,"url":75,"thumb":76,"extension":10},"Agreement for the Subscription of Shares","/template/agreement-for-the-subscription-of-shares-D317","https://templates.business-in-a-box.com/imgs/250px/317.png",{"label":78,"url":79,"thumb":80,"extension":10},"Exchange of Shares Agreement","/template/exchange-of-shares-agreement-D330","https://templates.business-in-a-box.com/imgs/250px/330.png",{"label":82,"url":83,"thumb":84,"extension":10},"Share Donation Agreement","/template/share-donation-agreement-D341","https://templates.business-in-a-box.com/imgs/250px/341.png",{"description":86,"descriptionCustom":6,"label":87,"pages":88,"size":9,"extension":10,"preview":89,"thumb":90,"svgFrame":91,"seoMetadata":92,"parents":94,"keywords":93,"url":100},"SHAREHOLDERS AGREEMENT This Shareholders Agreement (the \"Agreement\") is made and effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the \"Company\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [FIRST SHAREHOLDER NAME] (the \"First Shareholder\"), an individual with his main address located at OR a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [SECOND SHAREHOLDER NAME] (the \"Second Shareholder\"), an individual with his main address located at OR a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] AND: [THIRD SHAREHOLDER NAME] (the \"Third Shareholder\"), an individual with his main address located at OR a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] WITNESSETH: WHEREAS, the present distribution of shares of the Company is as follows: Name Number of Shares WHEREAS, in order to insure the harmonious and successful management and control of the Company, and to provide for an orderly and fair disposition of shares of common stock of the Company now or hereafter owned by any Shareholder; NOW, THEREFORE, in consideration of the mutual promises of the parties hereto, and intending to be legally bound, the parties hereby agree as follows: Definitions and organisation of the company \"Offering Shareholder\" means any Shareholder, or his personal representatives, heirs, administrators, and executors, as the case may be, who pursuant to this Agreement must or does offer all or any of his Shares to the Company or the Continuing Shareholders. \"Continuing Shareholders\" means all Shareholders other than an Offering Shareholder. \"Shares\" means shares of Common Stock of the Company now or hereafter owned by any Shareholder. \"Buyer\" means the Company or those Continuing Shareholders who purchase an Offering Shareholder's Shares pursuant to this Agreement. \"Management Shareholder\" means First Shareholder, Second Shareholder and Third Shareholder. ORGANISATION OF THE COMPANY The affairs of the Company will be managed by a board of [NUMBER] directors unless changed by a unanimous Directors' Resolution. The present directors of the Company are [DIRECTORS' NAMES]. It is agreed that [SHAREHOLDERS' NAMES] shall each be entitled to elect one director to the board of directors of the Company so long as each is a Shareholder. Two (2) directors shall constitute a quorum for the transaction of any business at any meeting of the board of directors. At all meetings of the board of directors, every motion to be carried must receive a majority of the votes cast, subject to the provisions of subparagraphs 2.4 and 2.5. Unless otherwise agreed, board meetings will be held at the head office of the Company. In the event that a nominee to the Board of one of the Shareholders shall fail to vote and act as a director to carry out the provisions of this agreement, then the shareholders agree to exercise their right as shareholders of the Company and in accordance with the Articles of the Company to remove such nominee from the Board and to elect in the place or stead thereof such individual who will use his/her best efforts to carry out the provisions of this agreement but only in the event that the Shareholder whose nominee has been removed fails to appoint a successor within a period of fourteen days from the date such nominee has been removed. The election, appointment and determination of officers and the auditors and advisors of the Company, the defining of their duties and functions and the salaries and remuneration to be paid to them will be a function of the board of directors. Until changed by the board of directors, the Officers of the Company and their annual salaries shall be: Office Held: Director: [NAME] [SALARY] Secretary: [NAME] [SALARY] All direct out-of-pocket expenses will be reimbursed provided these falls within guidelines set out by the Board of Directors from time to time. Until otherwise agreed, each officer of the Company will commit to spending his/her full time on the affairs of the Company. Until changed by the board of directors, the auditors and advisors of the Company shall be: Auditor: Legal Advisors: There shall be kept, in such bank or banks (including trust companies) as may be determined by the board of directors, bank accounts of the Company in which shall be deposited all monies received by the Company in the course of carrying on business from time to time. All payments on account of the Company shall be made by cheques drawn on the bank account and all cheques, drafts or other instruments drawn and made for the purposes of the business of the Company shall be executed by such directors, officers or employees as may from time to time be authorized so to do by the board of directors. Subject to paragraph 2.6, all decisions relating to the management and control of the business of the Company shall be determined by the board of directors of the Company, provided always that the following matters shall be determined by a Special Directors' Resolution: any capital expenditures greater than xxxx; any lease commitments greater than xxxx; the acquisition of any business interests by the Company; the elections of officers of the Company; the payment of any cash dividends or stock dividends to Shareholders of the Company; the issuance of any debt obligations of the Company; the disposal of the whole or any part of the business, undertaking, or assets of the Company outside the normal course of business of the Company the transfer of any shares of the Company; changes or variations in the objects or powers of the Company; the liquidation or winding up of the Company; the approval of any contracts or transactions outside the normal course of business; the execution of any contract involving a consideration greater than xxxx within the normal course of business; the lending of money by the Company; the guarantee by the Company of the debts or obligations of any other person, firm or body corporate; any non-budgeted expenditures greater than xxxx; business plan and/or budgets. The following decisions shall be determined by a Unanimous Directors' Resolution: alterations, variations or changes to the authorized or issued capital of the Company; the salaries and bonuses of officers and directors of the Company; the issue, redemption or purchase of any Shares; and changes in the number of directors of the Company The Shareholders may pledge any of their Shares as security for any borrowings by them provided the pledgee executes an agreement, in writing, providing that the pledgee shall be subject to all of the terms of this Agreement. The board of directors shall meet at least four times during each fiscal year of the Company. Any director can call a meeting provided 10 days notice is given. Notice may be waived. During the first year from the date of this agreement, the board of directors shall meet on a monthly basis. Directors may elect to attend a board meeting by telephone conference call. Each Shareholder shall, for so long as s/he is the owner of shares of the Company devote such of his/her business, time and energy as may be reasonably required to carry on the business of the Company and the Shareholder shall use his/her best efforts, skill and abilities to promote the interests of the Company. Each Shareholder agrees that he/she will not engage, without the consent of the other Shareholders, in a business which is directly competitive to that of the Company. Purchase for Investment","Shareholders Agreement","16","https://templates.business-in-a-box.com/imgs/1000px/shareholders-agreement-D1016.png","https://templates.business-in-a-box.com/imgs/250px/1016.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#1016.xml",{"title":93,"description":6},"shareholders agreement",[95,97],{"label":18,"url":96},"business-legal-agreements",{"label":98,"url":99},"Incorporation Agreements","incorporation-agreement","/template/shareholders-agreement-D1016",{"description":102,"descriptionCustom":6,"label":103,"pages":104,"size":105,"extension":10,"preview":106,"thumb":107,"svgFrame":108,"seoMetadata":109,"parents":110,"keywords":113,"url":114},"JOINT VENTURE AGREEMENT This Joint Venture Agreement (the \"Agreement\") is effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the \"First Joint Venturer\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [SECOND JOINT VENTURER NAME] (the \"Second Joint Venturer\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] This Agreement is entered by First Joint Venturer and Second Joint Venturer, herein after collectively referred to as the \"Joint Venturers\", for the purpose of performing: [DESCRIBE JOINT VENTURE]. WITNESSETH: WHEREAS, the parties are desirous of forming a Joint Venture (the \"Venture\"), under the laws of the [State/Province] of [STATE/PROVINCE] by execution of this Agreement for the purposes set forth herein and are desirous of fixing and defining between themselves their respective responsibilities, interests, and liabilities in connection with the performance of the before mentioned project; and NOW, THEREFORE, in consideration of the mutual covenants and promises herein contained, the Parties herein agree to constitute themselves as Joint Venturers, henceforth, \"Venturers\" for the purposes before mentioned, and intending to be legally bound hereby, the parties hereto, after first being duly sworn, do covenant, agree and certify as follows: DEFINITIONS \"Affiliate\" shall refer to (i) any person directly or indirectly controlling, controlled by or under common control with another person, (ii) any person owning or controlling 10% or more of the outstanding voting securities of such other person, (iii) any officer, director or other partner of such person and (iv) if such other person is an officer, director, joint Venturer or partner, any business or entity for which such person acts in any such capacity. \"Venturers\" shall refer to [VENTURE NAME] Inc., and any successor(s) as may be designated and admitted to the Venture. \"Internal Revenue Code\", \"Code\" or \"I.R.C.\" shall refer to the current and applicable Internal Revenue Code. \"Net Profits and Net Losses\" means the taxable income and loss of the Venture, except as follows: [DESCRIBE] The \"Book\" value of an asset shall be substituted for its adjusted tax basis if the two differ, but otherwise Net Profits and Net Losses shall be determined in accordance with federal income tax principles. \"Project\" shall refer to that certain [DESCRIBE] project known as [NAME]. \"Treasury Regulations\" shall refer to those regulations promulgated by the Department of the Treasury with respect to certain provision of Internal Revenue Code. \"Percentage of Participation\" shall refer to that figure set forth in Exhibit A. FORMATION, NAME, AND PRINCIPLE PLACE OF BUSINESS Formation (a) The Venturers do hereby form a joint venture pursuant to the laws of the State of [STATE/PROVINCE] in order for the Venture to carry on the purposes for which provision is made herein. (b) The Ventures shall execute such certificates as may be required by the laws of the [State/Province] of [STATE/PROVINCE] or of any other state in order for the Venture to operate its business and shall do all other acts and things requisite for the continuation of the Venture as a joint venture pursuant to applicable law. Name The Name and style under which the Venture shall be conducted is: [DESCRIBE]. Principal place of business The Venture shall maintain its principal place of business at [FULL ADDRESS]. The Venture may re-locate its office from time to time or have additional offices as the Venturers may determine. PURPOSE OF THE JOINT VENTURE The business of the Venture shall be to perform: [DESCRIBE], a project having the Contract # , being entitled, and being in a dollar amount of [AMOUNT], in accordance with the contract documents for the Project and all such other business incidental to the general purposes herein set forth. TERM The term of the Venture shall commence as of the date hereof and shall be terminated and dissolved upon the earliest to occur of: (i) completion of the Project and receipt of all sums due the Venture by the Owner, [OWNER NAME] pursuant thereto and payment of all laborers and material men employed by the Venture in connection with the project; (ii) [DATE]; (iii) the unanimous agreement of the Ventures; or (iv) the order of a court of competent jurisdiction. PERCENTAGE OF PARTICIPATION Description Except as otherwise provided in sections 6.0 and 9.0 hereof, the interest of the Parties in any gross profits and their respective shares in any losses and/or liabilities that may result from the filing of a joint bid and/or the performance of the Construction Contract, and their interests in all property and equipment acquired and all money received in connection with the performance of the Contract shall be as follows: [Name Joint Venture Partner Percentage] Losses The Parties agree that in the event any losses arise out of or results from the performance of the Project, each Venturer shall assume and pay the share of the losses that is equal to the percentage of participation. Liabilities If for any reason, a Venturer sustains any liabilities or is required to pay any losses arising out of or directly connected with the Project, or the execution of any surety bonds or indemnity agreements in connection therewith, which are in excess of its Percentage of Participation, in the Joint Venture, the other Venturer shall promptly reimburse such Venturer this excess, so that each and every member of the Joint Venturer will then have paid its proportionate share of such losses to the full extent of its Percentage of Participation. Indemnities The Venturers agree to indemnify each other and to hold the other harmless from, any and all losses of the Joint Venture that are in excess of such other Venturer's Percentage of Participation. Provided that the provisions of this subsection shall be limited to losses that are directly connected with or arise out of the performance of the Project and/or the execution of any bonds or indemnity agreements in connection therewith and shall not be relate to or include any incidental, indirect or consequential losses that may be sustained or suffered by a Party. Duration The Parties shall from time to time execute such bonds and indemnity agreements, including applications there and other documents that may be necessary in connection with the performance of the Project. Provided however, that the liability of each of the Parties under any agreements to indemnify a surety company or surety companies shall be limited to the percentage of the total liability assumed by all the Parties under such indemnity agreements that is equal to the Party's Percentage of Participation. Initial contribution of the venture (a) The Venturers shall contribute the Property to the Venture and their Capital Account shall each be credited with the appropriate value of such contribution in accordance with their Venture interests. (b) Except as otherwise required by law or this Agreement, the Venturers shall not be required to make any further capital contributions to the Venture. Venture interests Upon execution of this Agreement, the Venturers shall each own the following interests in the Venture: Joint Venture Partner Percentage Return of capital contributions (a) No Venturer shall have the right to withdraw his capital contributions or demand or receive the return of his capital contributions or any part thereof, except as otherwise provided in this Agreement. (b) The Venturers shall not be personally liable for the return of capital contributions or any part thereof, except as otherwise provided in this Agreement. (c) The Venture shall not pay interest on capital contributions of any Venturer.","Joint Venture Agreement","7",70,"https://templates.business-in-a-box.com/imgs/1000px/joint-venture-agreement-D889.png","https://templates.business-in-a-box.com/imgs/250px/889.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#889.xml",{"title":6,"description":6},[111,112],{"label":18,"url":96},{"label":18,"url":96},"joint venture agreement","/template/joint-venture-agreement-D889",{"description":116,"descriptionCustom":6,"label":117,"pages":118,"size":9,"extension":10,"preview":119,"thumb":120,"svgFrame":121,"seoMetadata":122,"parents":124,"keywords":123,"url":127},"STOCK OPTION PLAN This Stock Option Plan (the \"Plan\") is given by [COMPANY NAME] (the \"Company\"), having its registered office at [SPECIFY ADDRESS] to its Employees. This Plan was approved and adopted by the Board of Directors and by the stockholders on [DATE]. STATEMENT OF PURPOSE [COMPANY NAME] has formulated this Plan, in furtherance of the corporate policy of the Company, for creating an environment conducive to higher growth opportunities for its Employees and the Employees of its Affiliates, and with a view to align the interests of such Employees and those of the shareholders by creating a common sense of purpose towards creating sustainable shareholder value. DEFINITIONS Administrator shall mean the Compensation Committee of the Board (or a subcommittee thereof) acting in its capacity as Administrator of the Plan. Applicable Laws shall mean the legal requirements related to the Plan and the option under applicable provisions of the securities laws of [STATE/PROVINCE]. Board shall mean the Company's Board of Directors. Company shall mean [NAME OF COMPANY]. Option Shares shall mean the number of shares of Common Stock subject to the option as specified in the attached Exhibit A. Optionee shall mean the person eligible to avail the Stock Option Plan. Permanent Disability shall mean the inability of the Optionee to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which is expected to result in death or to be of continuous duration of [NUMBER OF MONTHS] months or more. Plan shall mean this Stock Option Plan. GRANT OF OPTION The Company hereby grants to the eligible person (the \"Optionee\") an option to purchase shares of Common Stock under the Plan. The date on which this option is granted (the \"Grant Date\"), the number of shares of Common Stock purchasable under this option (the \"Option Shares\"), the exercise price payable per share (the \"Exercise Price\"), the applicable vesting schedule by which this option shall vest and become exercisable incrementally for the Option Shares (the \"Vesting Schedule\") and the date to be used to measure the maximum term of this option (the \"Expiration Date\") are indicated on the attached Exhibit A to this Plan. The remaining terms and conditions governing this option shall be as set forth in this Plan. ELIGIBILITY FOR THE GRANT OF OPTIONS The criteria to be fulfilled by an Employee for being considered an Eligible Employee may be prescribed by the Committee from time to time. Only Employees fulfilling such criteria and who are not Disqualified Employees shall be considered Eligible Employees for the purposes of this Plan. An option can be granted only to an Eligible Employee who has been selected by the Committee. While selecting Eligible Employees for the award of grants and for deciding the number of options to be granted to such Eligible Employees, the Committee may be guided by the following considerations (i.e. eligibility criteria): Number of years of service Job profile and grade Performance rating or key result area appraisal Any other factors the Board of Directors or the Committee may deem appropriate. OPTION TERM The term of this option shall commence on the Grant Date and continue to be in effect until the close of business on the last business day prior to the Expiration Date specified in the attached Exhibit A, unless sooner terminated in accordance with this Plan. LIMITED TRANSFERABILITY This option shall be neither transferable nor assignable by the Optionee other than by will or the laws of inheritance following the Optionee's death and may be exercised, during the Optionee's lifetime, only by the Optionee. DATE OF EXERCISE This option shall vest and become exercisable for the Option Shares in a series of installments in accordance with the Vesting Schedule set forth in the attached Exhibit A. As the option vests and becomes exercisable for such installments, those installments shall accumulate, and the option shall remain exercisable for the accumulated installments until the last business day prior to the Expiration Date or any sooner termination of the option term. CESSATION OF SERVICE The option mentioned above shall terminate (and this option shall cease to be outstanding) prior to the Expiration Date should any of the following provisions become applicable: Except as otherwise expressly provided in subparagraphs 8.1.2 through 8.1.7 of this Paragraph 8, should the Optionee cease to remain in Continuous Service for any reason while this option is outstanding, then the Optionee shall have until the close of business on the last business day prior to the expiration of the [NUMBER OF MONTHS]-month period measured from the date of such cessation of Continuous Service during which to exercise this option for any or all of the Option Shares for which this option is vested and exercisable at the time of the Optionee's cessation of Continuous Service, but in no event shall this option be exercisable at any time after the close of business on the last business day prior to the Expiration Date. In the event the Optionee ceases Continuous Service by reason of his or her death while this option is outstanding, then this option may be exercised, for any or all of the Option Shares for which this option is vested and exercisable at the time of the Optionee's cessation of Continuous Service, by (i) the personal representative of the Optionee's estate or (ii) the person or persons to whom the option is transferred pursuant to the Optionee's will or the laws of inheritance following the Optionee's death. However, if the Optionee dies while holding this option and has an effective beneficiary designation in effect for this option at the time of his or her death, then the designated beneficiary or beneficiaries shall have the exclusive right to exercise this option following the Optionee's death. Any such right to exercise this option shall lapse, and this option shall cease to be outstanding, upon the close of business on the last business day prior to the earlier of (a) the expiration of the twelve (12)-month period measured from the date of the Optionee's death or (b) the Expiration Date. Upon the expiration of such limited exercise period, this option shall terminate and cease to be outstanding for any exercisable Option Shares for which the option has not otherwise been exercised. Should the Optionee cease Continuous Service by reason of Permanent Disability while this option is outstanding, then the Optionee shall have until the close of business on the last business day prior to the expiration of the twelve (12)-month period measured from the date of such cessation of Continuous Service during which to exercise this option for any or all of the Option Shares for which this option is vested and exercisable at the time of such cessation of Continuous Service. In no event, however, shall this option be exercisable at any time after the close of business on the last business day prior to the Expiration Date. Except as otherwise precluded by Applicable Laws, should (i) the Optionee cease Continuous Service after completion of at least three (3) years of Continuous Service and (ii) the sum of the Optionee's attained age and completed years of Continuous Service at the time of such cessation of service equals or exceeds seventy (70) years, then the Optionee shall have until the close of business on the last business day prior to the expiration of the thirty-six (36)-month period measured from the date of such cessation of Continuous Service during which to exercise this option for any or all of the Option Shares for which this option is vested and exercisable at the time of such cessation of Continuous Service. In no event, however, shall this option be exercisable at any time after the close of business on the last business day prior to the Expiration Date.","Stock Option Plan","9","https://templates.business-in-a-box.com/imgs/1000px/stock-option-plan-D13284.png","https://templates.business-in-a-box.com/imgs/250px/13284.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#13284.xml",{"title":123,"description":6},"stock option plan",[125,126],{"label":18,"url":96},{"label":18,"url":96},"/template/stock-option-plan-D13284",{"description":129,"descriptionCustom":6,"label":130,"pages":131,"size":132,"extension":10,"preview":133,"thumb":134,"svgFrame":135,"seoMetadata":136,"parents":137,"keywords":144,"url":145},"STOCK PURCHASE AGREEMENT This Stock Purchase Agreement (the \"Agreement\") is made and effective [DATE] BETWEEN: [YOUR COMPANY NAME] (the \"Seller\"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [PURCHASER NAME] (the \"Purchaser\"), an individual with his main address located at OR a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] RECITALS WHEREAS, the Seller is the record owner and holder of the issued and outstanding shares of the capital stock of the Company, a [STATE/PROVINCE] company, which Company has issued capital stock of [NUMBER] shares of [AMOUNT] par value common stock; and WHEREAS, the Purchaser desires to purchase said stock and the Seller desires to sell said stock, upon the terms and subject to the conditions hereinafter set forth; NOW, THEREFORE, in consideration of the mutual covenants and agreements contained in this Agreement, and in order to consummate the purchase and the sale of the Company's Stock aforementioned, it is hereby agreed as follows: PURCHASE AND SALE Subject to the terms and conditions hereinafter set forth, at the closing of the transaction contemplated hereby, the Seller shall sell, convey, transfer, and deliver to the Purchaser certificates representing such stock, and the Purchaser shall purchase from the Seller the Company's Stock in consideration of the purchase price set forth in this Agreement. The certificates representing the Company's Stock shall be duly endorsed for transfer or accompanied by appropriate stock transfer powers duly executed in blank, in either case with signatures guaranteed in the customary fashion, and shall have all the necessary documentary transfer tax stamps affixed thereto at the expense of the Seller. The closing of the transactions contemplated by this Agreement (\"Closing\"), shall be held at [ADDRESS], on [DATE], at [TIME], or such other place, date and time as the parties hereto may otherwise agree. AMOUNT AND PAYMENT OF PURCHASE PRICE The total consideration and method of payment thereof are fully set out in Exhibit \"A\" attached hereto and made a part hereof. REPRESENTATIONS AND WARRANTIES OF SELLER Seller hereby warrants and represents: Organization and Standing. Company is a company duly organized, validly existing and in good standing under the laws of the [State/Province] of [STATE/PROVINCE] and has the corporate power and authority to carry on its business as it is now being conducted. Restrictions on Stock:","Stock Purchase Agreement","4",42,"https://templates.business-in-a-box.com/imgs/1000px/stock-purchase-agreement-D349.png","https://templates.business-in-a-box.com/imgs/250px/349.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#349.xml",{"title":6,"description":6},[138,141],{"label":139,"url":140},"Finance & Accounting","finance-accounting",{"label":142,"url":143},"Buy & Sell Shares","buy-sell-shares","stock purchase agreement","/template/stock-purchase-agreement-D349",{"description":147,"descriptionCustom":6,"label":148,"pages":149,"size":9,"extension":10,"preview":150,"thumb":151,"svgFrame":152,"seoMetadata":153,"parents":155,"keywords":154,"url":160},"PARTNERSHIP AGREEMENT This Partnership Agreement (\"Agreement\") is made and effective this [Date], BETWEEN: [YOUR COMPANY NAME] (the \"First Partner\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [SECOND PARTNER NAME] (the \"Second Partner\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] RECITALS Partners desire to join together for the pursuit of common business goals. Partners have considered various forms of joint business enterprises for their business activities. Partners desire to enter into a partnership agreement as the most advantageous business form for their mutual purposes. The parties hereto agree to form a limited partnership (the \"Partnership\") under [LAW, CODE OR ACT]. In consideration of the mutual promises contained in this agreement, partners agree as follows: NAME AND DOMICILE The name of the partnership shall be [name]. The principal place of business shall be at [address], [city], [state/province], unless relocated by consent of the partners. Purposes Subject to the limitations set forth in this Agreement, the purposes of the Partnership are to engage in the business of [DESCRIBE ACTIVITIES]; and to conduct other activities as may be necessary or incidental to or desirable in connection with the foregoing. DURATION OF AGREEMENT The term of this agreement shall be for [number] years, commencing on [date], and terminating on [date], unless sooner terminated by mutual consent of the parties or by operation of the provisions of this agreement. CLASSIFICATION AND PERFORMANCE BY PARTNERS Partners shall be classified as active partners, advisory partners, or estate partners. An active partner may voluntarily become an advisory partner, may be required to become one irrespective of age, and shall automatically become one after attaining the age of [age] years, and in each case shall continue as such for [number] years unless the partner sooner withdraws or dies. If an active partner dies, the partner's estate will become an estate partner for [number] years. If an advisory partner dies within [Number] years of having become an advisory partner, the partner will become an estate partner for the balance of the [number]-year period. Only active partners shall have any vote in any partnership matter. At the time of the taking effect of this partnership agreement, all the partners shall be active partners except [name] and [name], who shall be advisory partners. An active partner, after attaining the age of [age] years, or prior to that age if the [executive committee or as the case may be] with the approval of [two-thirds or as the case may be] of all the other active partners determines that the reason for the change in status is bad health, may become an advisory partner at the end of any calendar month on giving [number] calendar months' prior notice in writing of the partner's intention to do so. The notice shall be deemed to be sufficient if sent by registered mail addressed to the partnership at its principal office at [address], [city], [state/province] not less than [number] calendar months prior to the date when the change is to become effective. Any active partner may at any age be required to become an advisory partner at any time if the [executive committee or as the case may be] with the approval of [two-thirds or as the case may be] of the other active partners shall decide that the change is for any reason in the best interests of the partnership, provided notice of the decision shall be given in writing to the partner. The notice shall be signed by the [chairman or as the case may be] of the [executive committee or as the case may be] or, in the event of his or her being unable to sign at the time, by another member of the [executive committee or as the case may be]. The notice shall be served personally on the partner required to change his or her status or mailed by registered mail to the partner's last known address. Change of the partner's status shall become effective as of the date specified in the notice. Every active partner shall automatically and without further act become an advisory partner at the end of the fiscal year in which the partner's birthday occurs. In the event that an active partner becomes an advisory partner or dies, the partner or the partner's estate shall be entitled to the following payments at the following times: [describe] Each active partner shall apply all of the partner's experience, training, and ability in discharging the partner's assigned functions in the partnership and in the performance of all work that may be necessary or advantageous to further the business interests of the partnership. CONTRIBUTION Each partner shall contribute [amount] on or before [date] to be used by the partnership to establish its capital position. Any additional contribution required of partners shall only be determined and established in accordance with Article Nineteen. MANAGEMENT OF THE PARTNERSHIP The Partnership shall be managed by [SPECIFY]. Subject to the limitations specifically contained in this Agreement, [PARTY MANAGING THE PARTNERSHIP] shall have the full, exclusive and absolute right, power and authority to manage and control the Partnership and the property, assets and business thereof. [PARTY MANAGING THE PARTNERSHIP] shall have all of the rights, powers and authority conferred by law or under other provisions of this Agreement. Without limiting the generality of the foregoing, such powers include the right on behalf of the Partnership, in [PARTY MANAGING THE PARTNERSHIP]' sole discretion, to: Acquire, purchase, renovate, improve, and own any property or assets necessary or appropriate or in the best interests of the business of the Partnership, and to acquire options for the purchase of any such property; Borrow money, issue evidences of indebtedness in connection therewith, refinance, increase the amount of, modify, amend or change the terms of, or extend the time for the payment of, any indebtedness or obligation of the Partnership, and secure such indebtedness by mortgage, deed of trust, pledge or other lien on Partnership assets; Sue on, defend or compromise any and all claims or liabilities in favor of or against the Partnership and to submit any or all such claims or liabilities to arbitration; File applications, communicate and otherwise deal with any and all governmental agencies having jurisdiction over, or in any way affecting, the Partnership's assets or any part thereof or any other aspect of the Partnership business; Retain services of any kind or nature in connection with the Partnership business, and to pay therefore such remuneration deem reasonable and proper; and Perform any and all other acts deem necessary or appropriate to the Partnership business. TRANSFER OF PARNERSHIP INTERESTS Restrictions on Transfer None of the Partners shall sell, assign, transfer, mortgage, encumber, or otherwise dispose of the whole or part of that Partner's interest in the Partnership, and no purchaser or other transferee shall have any rights in the Partnership as an assignee or otherwise with respect to all or any part of that Partnership interest attempted to be sold, assigned, transferred, mortgaged, encumbered, or otherwise disposed of, unless and to the extent that the remaining Partner(s) have given consent to such sale, assignment, transfer, mortgage, or encumbrance, but only if the transferee forthwith assumes and agrees to be bound by the provisions of this Agreement and to become a Partner for all purposes hereof, in which event, such transferee shall become a substituted partner under this Agreement.","Partnership Agreement","8","https://templates.business-in-a-box.com/imgs/1000px/partnership-agreement-D12551.png","https://templates.business-in-a-box.com/imgs/250px/12551.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#12551.xml",{"title":154,"description":6},"partnership agreement",[156,157],{"label":18,"url":96},{"label":158,"url":159},"Partnership Agreements","partnership-agreement","/template/partnership-agreement-D12551",{"description":162,"descriptionCustom":6,"label":163,"pages":164,"size":9,"extension":10,"preview":165,"thumb":166,"svgFrame":167,"seoMetadata":168,"parents":170,"keywords":169,"url":175},"NON-DISCLOSURE AGREEMENT (NDA) This Non-Disclosure Agreement (the \"Agreement\") is made and effective [DATE], BETWEEN: [YOUR COMPANY NAME] (the \"Disclosing Party\"), a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [YOUR COMPLETE ADDRESS] AND: [RECEIVING PARTY NAME] (the \"Receiving Party\"), an individual with his main address located at OR a corporation organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at: [COMPLETE ADDRESS] WHEREAS, Receiving Party has been or will be engaged in the performance of work on [DESCRIBE]; and in connection therewith will be given access to certain confidential and proprietary information; and WHEREAS, Receiving Party and Disclosing Party wish to evidence by this Agreement the manner in which said confidential and proprietary material will be treated. NOW, THEREFORE, it is agreed as follows: NON-DISCLOSURE OF CONFIDENTIAL INFORMATION Both Parties understand and agree that each Party may have access to the confidential information of the other party. For the purposes of this Agreement, \"Confidential Information\" means proprietary and confidential information about the Disclosing Party's (or it's suppliers') business or activities. Such information includes all business, financial, technical, and other information marked or designated by such Party as \"confidential\" or \"proprietary.\" Confidential Information also includes information which, by the nature of the circumstances surrounding the disclosure, ought in good faith to be treated as confidential. For the purposes of this Agreement, Confidential Information does not include: Information that is currently in the public domain or that enters the public domain after the signing of this Agreement. Information a Party lawfully receives from a third Party without restriction on disclosure and without breach of a non-disclosure obligation. Information that the Receiving Party knew prior to receiving any Confidential Information from the Disclosing Party. Information that the Receiving Party independently develops without reliance on any Confidential Information from the Disclosing Party. Each Party agrees that it will not disclose to any third Party or use any Confidential Information disclosed to it by the other Party except when expressly permitted in writing by the other Party. Each Party also agrees that it will take all reasonable measures to maintain the confidentiality of all Confidential Information of the other Party in its possession or control. TERM The term of this Agreement is [number] of [years/months] from the date of execution by both Parties. TITLE The Receiving Party agrees that all Confidential Information furnished by the Disclosing Party shall remain the sole property of the Disclosing Party. DISCLAIMER","Non Disclosure Agreement Nda","3","https://templates.business-in-a-box.com/imgs/1000px/non-disclosure-agreement-nda-D12692.png","https://templates.business-in-a-box.com/imgs/250px/12692.png","https://templates.business-in-a-box.com/svgs/docviewerWebApp1.html?v6#12692.xml",{"title":169,"description":6},"non disclosure agreement nda",[171,172],{"label":18,"url":96},{"label":173,"url":174},"Confidentiality Agreements","confidentiality-agreement","/template/non-disclosure-agreement-nda-D12692",false,{"seo":178,"reviewer":190,"legal_disclaimer":194,"quick_facts":195,"at_a_glance":197,"personas":201,"variants":226,"glossary":253,"clauses":287,"how_to_fill":338,"common_mistakes":379,"faqs":404,"industries":432,"comparisons":457,"diy_vs_lawyer":470,"jurisdictions":483,"related_template_ids_curated":504,"schema":516,"classification":517},{"meta_title":179,"meta_description":180,"primary_keyword":181,"secondary_keywords":182},"Free Shared Equity Agreement Template – Word & PDF","Free shared equity agreement template for splitting ownership in a business or property. Trusted by companies in USA, Canada, UK, Australia, and 190+ countries.","shared equity agreement template",[15,183,184,185,186,187,188,189],"equity sharing agreement template","shared equity contract template","business equity sharing agreement","co-ownership equity agreement","shared equity agreement word","free shared equity agreement template","equity split agreement template",{"name":191,"credential":192,"reviewed_date":193},"Bruno Goulet","CEO, Business in a Box","2026-05-02",true,{"difficulty":196,"legal_review_recommended":194,"signature_required":194,"notarization_required":176},"advanced",{"what_it_is":198,"when_you_need_it":199,"whats_inside":200},"A Shared Equity Agreement is a legally binding contract between two or more parties that formally allocates ownership interests in a business, venture, or asset. This free Word download defines each party's equity percentage, capital contributions, voting rights, profit distributions, transfer restrictions, and exit provisions in a single document you can edit online and export as PDF.\n","Use it when founding a company with co-owners, admitting a new equity partner, issuing shares to a key employee, or entering a co-investment arrangement where ownership stakes must be documented and enforced in writing before money or work changes hands.\n","Party identification and equity percentages, capital contribution schedules, vesting terms, voting and governance rights, profit and loss allocation, transfer restrictions and right of first refusal, buyout and exit mechanics, representations and warranties, and governing law.\n",[202,206,210,214,218,222],{"title":203,"use_case":204,"icon_asset_id":205},"Co-founders","Documenting equity splits and vesting before a company is incorporated","persona-startup-founder",{"title":207,"use_case":208,"icon_asset_id":209},"Small business owners","Admitting a new partner or investor with a defined ownership stake","persona-small-business-owner",{"title":211,"use_case":212,"icon_asset_id":213},"Real estate investors","Structuring co-ownership of a property with clearly defined exit rights","persona-real-estate-investor",{"title":215,"use_case":216,"icon_asset_id":217},"Angel investors","Formalizing an equity stake in a startup in exchange for capital","persona-investor",{"title":219,"use_case":220,"icon_asset_id":221},"Key employee recipients","Receiving equity compensation tied to a vesting schedule and performance","persona-employee",{"title":223,"use_case":224,"icon_asset_id":225},"Joint venture partners","Defining ownership shares and governance in a shared business venture","persona-business-partner",[227,231,235,239,242,246,249],{"situation":228,"recommended_template":229,"slug":230},"Splitting equity among co-founders at company formation","Co-Founder Equity Agreement","co-founder-agreement-D13317",{"situation":232,"recommended_template":233,"slug":234},"Granting equity to an employee as part of compensation","Employee Equity Agreement","employee-stock-option-agreement-D12613",{"situation":236,"recommended_template":237,"slug":238},"Admitting a new investor with a preferred return","Shareholder Agreement","adhesion-to-the-unanimous-shareholder-agreement-D848",{"situation":240,"recommended_template":103,"slug":241},"Structuring a joint venture with a defined project scope","joint-venture-agreement-D889",{"situation":243,"recommended_template":244,"slug":245},"Co-investing in residential or commercial real estate","Real Estate Co-Ownership Agreement","co-ownership-agreement-D13256",{"situation":247,"recommended_template":248,"slug":234},"Issuing stock options rather than direct equity","Stock Option Agreement",{"situation":250,"recommended_template":251,"slug":252},"Transferring an existing equity stake to a new party","Stock Transfer Agreement","stock-transfer-agreement-D14069",[254,257,260,263,266,269,272,275,278,281,284],{"term":255,"definition":256},"Equity Percentage","Each party's fractional ownership interest in the venture, expressed as a percentage of total outstanding shares or units.",{"term":258,"definition":259},"Capital Contribution","Cash, property, or services a party provides to the venture in exchange for their equity stake, as specified in the agreement.",{"term":261,"definition":262},"Vesting Schedule","A timetable under which equity ownership is earned incrementally over a defined period, often with a cliff date before any percentage vests.",{"term":264,"definition":265},"Cliff","The earliest point in a vesting schedule at which any equity vests — typically 12 months — before which none of the grant is earned.",{"term":267,"definition":268},"Right of First Refusal (ROFR)","A contractual right giving existing equity holders the option to purchase a departing party's shares before they are sold to an outside third party.",{"term":270,"definition":271},"Drag-Along Right","A provision allowing majority owners to require minority owners to join in a sale of the company on the same terms.",{"term":273,"definition":274},"Tag-Along Right","A provision allowing minority owners to participate in a sale of the company on the same terms negotiated by the majority seller.",{"term":276,"definition":277},"Dilution","The reduction in an existing owner's percentage stake that occurs when new shares are issued to additional investors or employees.",{"term":279,"definition":280},"Anti-Dilution Provision","A clause protecting an investor's equity percentage from dilution in future funding rounds, typically through weighted-average or full-ratchet adjustments.",{"term":282,"definition":283},"Buy-Sell Agreement","A mechanism within or alongside an equity agreement that governs how one co-owner may purchase another's interest upon a triggering event such as death, disability, or departure.",{"term":285,"definition":286},"Pro Rata Rights","The right of existing equity holders to participate in future funding rounds in proportion to their current ownership to maintain their percentage.",[288,293,298,303,308,313,318,323,328,333],{"name":289,"plain_english":290,"sample_language":291,"common_mistake":292},"Parties and recitals","Identifies every equity holder by full legal name and entity type, and states the purpose and background of the agreement.","This Shared Equity Agreement ('Agreement') is entered into as of [DATE] by and among [PARTY 1 FULL LEGAL NAME] ('Holder A'), [PARTY 2 FULL LEGAL NAME] ('Holder B'), and [COMPANY LEGAL NAME] (the 'Company'). The parties desire to set forth the terms governing their respective ownership interests in the Company.","Using trade names or nicknames instead of full registered legal entity names. Enforcement against the wrong entity — or no registered entity at all — can void the agreement.",{"name":294,"plain_english":295,"sample_language":296,"common_mistake":297},"Equity percentages and capitalization table","States each party's exact ownership percentage and attaches or references a cap table showing the full equity structure.","As of the Effective Date, the equity interests of the Company are allocated as follows: Holder A — [X]%; Holder B — [Y]%; reserved for future issuance — [Z]%. The cap table attached as Exhibit A is incorporated by reference.","Stating percentages in the body without attaching a cap table. As new shares are issued, the body language becomes inaccurate and disputes arise over the current ownership structure.",{"name":299,"plain_english":300,"sample_language":301,"common_mistake":302},"Capital contributions","Records what each party is contributing — cash, IP, property, or services — as consideration for their equity, and sets the timeline for delivery.","Holder A shall contribute $[AMOUNT] in cash on or before [DATE]. Holder B shall contribute the intellectual property described in Exhibit B, valued at $[AMOUNT], on or before [DATE]. Failure to contribute by the deadline shall result in [REMEDY].","Attributing a dollar value to non-cash contributions (IP, services) without an independent valuation or documented methodology. Inflated valuations can trigger tax consequences and create disputes at exit.",{"name":304,"plain_english":305,"sample_language":306,"common_mistake":307},"Vesting schedule and acceleration","Defines the timetable over which equity is earned, the cliff date, and any events — sale of the company, termination without cause — that accelerate full vesting.","Holder B's [X]% interest shall vest over [48] months, with a [12]-month cliff. Upon a Change of Control, all unvested equity shall immediately accelerate and be deemed fully vested. Voluntary resignation before the cliff forfeits all unvested equity.","Omitting acceleration provisions entirely. When a company is acquired before a co-founder's shares are fully vested, unvested equity may be cancelled without the co-founder receiving any benefit from the exit.",{"name":309,"plain_english":310,"sample_language":311,"common_mistake":312},"Voting rights and governance","Specifies each holder's voting power, which decisions require unanimous or supermajority consent, and how day-to-day management authority is allocated.","Each equity holder shall have voting rights proportionate to their ownership percentage. The following decisions require unanimous written consent of all holders: (a) issuance of new equity; (b) sale or merger of the Company; (c) incurrence of debt exceeding $[AMOUNT]; (d) amendment of this Agreement.","Giving equal voting rights regardless of equity percentage without the parties explicitly agreeing to that structure. A 10% holder with equal voting power can block a 90% majority — a common source of deadlock.",{"name":314,"plain_english":315,"sample_language":316,"common_mistake":317},"Profit and loss allocation","States how profits and losses are distributed among holders — typically pro rata to equity percentage — and the timing and method of distributions.","Net profits and losses of the Company shall be allocated among holders in proportion to their respective equity percentages. Distributions shall be made within [30] days of the end of each fiscal quarter, subject to the Company maintaining a minimum cash reserve of $[AMOUNT].","Not specifying a minimum cash reserve before distributions are required. Without one, a cash-strapped company can be forced to make distributions, triggering insolvency risk.",{"name":319,"plain_english":320,"sample_language":321,"common_mistake":322},"Transfer restrictions and right of first refusal","Prohibits any party from selling or transferring their equity without first offering it to the other holders on the same terms.","No holder may sell, assign, pledge, or otherwise transfer any equity interest without the prior written consent of the Company. Before any proposed transfer, the selling holder must deliver a Transfer Notice to all other holders, who shall have [30] days to exercise their right of first refusal at the offered price and terms.","Omitting the transfer restriction clause entirely for closely held companies. Without it, a co-founder can sell their stake to a competitor or an unwanted third party with no recourse.",{"name":324,"plain_english":325,"sample_language":326,"common_mistake":327},"Drag-along and tag-along rights","Allows majority holders to compel minority holders to join a sale (drag-along) and gives minority holders the right to participate in any majority-holder sale on the same terms (tag-along).","If holders representing at least [X]% of outstanding equity approve a sale of the Company, all other holders shall be required to vote in favor of and participate in such sale on identical terms ('Drag-Along'). Each holder shall also have the right to sell a pro rata portion of their equity in any transfer by a holder of more than [Y]% of outstanding equity ('Tag-Along').","Including drag-along rights without a minimum price protection for dragged minority holders. Courts in several jurisdictions have struck down drag-alongs that allowed majority holders to force a sale at below-market value.",{"name":329,"plain_english":330,"sample_language":331,"common_mistake":332},"Buyout and exit mechanics","Defines how one holder may buy out another upon a triggering event — departure, death, disability, or irreconcilable deadlock — and how the buyout price is determined.","Upon a Triggering Event, the remaining holders shall have the right to purchase the departing holder's equity at Fair Market Value, as determined by an independent appraiser agreed upon by the parties within [30] days of the Triggering Event. If no agreement is reached on an appraiser, each party shall appoint one, and the two appraisers shall select a third.","Defining buyout price as book value rather than fair market value. Book value routinely understates the worth of a profitable business, leaving departing founders significantly undercompensated.",{"name":334,"plain_english":335,"sample_language":336,"common_mistake":337},"Governing law and dispute resolution","Specifies which jurisdiction's law governs the agreement and whether disputes go to arbitration, mediation, or court.","This Agreement shall be governed by the laws of [STATE/PROVINCE/COUNTRY], without regard to conflict-of-laws principles. Any dispute shall be submitted to binding arbitration administered by [AAA/JAMS/OTHER] in [CITY], except that any party may seek injunctive relief in a court of competent jurisdiction.","Choosing a governing jurisdiction with no connection to where the company operates or the parties reside. Courts in the parties' home jurisdictions may override a foreign governing-law clause when local mandatory rules apply.",[339,344,349,354,359,364,369,374],{"step":340,"title":341,"description":342,"tip":343},1,"Identify all parties by full legal name and entity type","Enter each equity holder's full registered legal name — not a trade name or nickname — and specify their entity type (individual, LLC, corporation). Include the company's legal name and jurisdiction of incorporation.","Run a corporate registry search to confirm the exact registered name before execution — mismatches between the agreement and registration records create enforcement problems.",{"step":345,"title":346,"description":347,"tip":348},2,"Complete the cap table and equity percentages","List every equity holder with their exact percentage and attach the cap table as Exhibit A. Include any reserved pool for future employee grants or investor rounds so the full 100% is accounted for.","Use decimals rather than rounded whole numbers for precision — '33.33%' is clearer and less dispute-prone than '33%' when three co-founders split equally.",{"step":350,"title":351,"description":352,"tip":353},3,"Document capital contributions with valuations","Record each party's contribution — cash amount, IP description and agreed value, services description and agreed value — and set a delivery deadline. For non-cash contributions, attach a valuation methodology or independent appraisal as an exhibit.","Non-cash contributions valued above $25,000 should be supported by a third-party valuation to withstand IRS or CRA scrutiny on issuance.",{"step":355,"title":356,"description":357,"tip":358},4,"Set the vesting schedule and acceleration triggers","Specify the total vesting period (typically 36–48 months), the cliff date (typically 12 months), and the percentage that vests monthly or quarterly after the cliff. Define which events trigger full acceleration — change of control, termination without cause.","Single-trigger acceleration (change of control alone) is more founder-friendly; double-trigger (change of control plus termination) is more investor-friendly. Decide before negotiating.",{"step":360,"title":361,"description":362,"tip":363},5,"Define voting thresholds for reserved decisions","List the specific decisions that require supermajority or unanimous consent — new equity issuance, asset sales, debt above a threshold, amendment of the agreement — and set the required percentage for each category.","Keep the unanimous-consent list narrow. The longer it is, the easier it is for a minority holder to block routine business decisions and create deadlock.",{"step":365,"title":366,"description":367,"tip":368},6,"Configure transfer restrictions and ROFR mechanics","Specify the ROFR notice period (30 days is standard), who receives the notice, how the offered price is determined, and what happens if no holder exercises the right within the window.","Include a deemed-transfer provision covering pledges and assignments to lenders — otherwise a holder can effectively transfer economic rights without triggering ROFR.",{"step":370,"title":371,"description":372,"tip":373},7,"Draft the buyout price methodology","Choose between fair market value (preferred), EBITDA multiple, book value, or a hybrid formula. Specify how the appraiser is selected and the timeline for completing the valuation after a triggering event.","A pre-agreed EBITDA multiple (e.g., 5× trailing 12-month EBITDA) is faster and cheaper than a full appraisal — but only works if the business has consistent, auditable earnings.",{"step":375,"title":376,"description":377,"tip":378},8,"Sign before any equity is issued or money changes hands","All parties must execute the agreement before the effective date of the equity grant or capital contribution. Post-contribution signatures in common-law jurisdictions risk being unenforceable without documented fresh consideration.","Use a dated signature block with witness lines for each party and store the fully-executed original in a secure, accessible location such as BIB Drive.",[380,384,388,392,396,400],{"mistake":381,"why_it_matters":382,"fix":383},"No vesting schedule for co-founders","A co-founder who leaves after six months with 33% of the company fully vested can hold the business hostage at every future funding round, acquisition, or governance decision.","Always impose a 4-year vesting schedule with a 1-year cliff on all founder equity — even if the founders are friends. Investors will require it anyway before a Series A.",{"mistake":385,"why_it_matters":386,"fix":387},"Defining buyout price as book value","Book value reflects historical cost of assets minus liabilities — it has no relationship to the actual market value of a profitable business, and routinely undercompensates a departing founder by six figures or more.","Use fair market value determined by an independent appraiser, or a pre-agreed earnings multiple that both parties accept as a proxy for market value at the time of drafting.",{"mistake":389,"why_it_matters":390,"fix":391},"Omitting transfer restrictions in a closely held company","Without a transfer restriction clause, any equity holder can sell their stake to a competitor, an estranged spouse, or a third party with no notice, leaving co-owners locked in business with someone they never agreed to partner with.","Include a right of first refusal covering all voluntary and involuntary transfers — including pledges, assignments, and transfers triggered by divorce or bankruptcy proceedings.",{"mistake":393,"why_it_matters":394,"fix":395},"Identical voting rights regardless of equity percentage","Equal voting rights can give a 5% minority holder veto power over majority decisions, creating deadlock that stalls hiring, financing, and strategic pivots until courts or buyout mechanics intervene.","Tie voting rights to equity percentage by default, and reserve unanimous-consent requirements for a narrow, explicitly listed set of material decisions only.",{"mistake":397,"why_it_matters":398,"fix":399},"No drag-along provision","Without drag-along rights, a minority holdout can block an otherwise unanimous acquisition, causing the deal to collapse and costing all shareholders the exit value.","Include a drag-along clause triggered at a defined majority threshold — typically 66% or 75% — with a minimum price protection floor to prevent abuse of minority holders.",{"mistake":401,"why_it_matters":402,"fix":403},"Signing after equity is issued or contributions are made","In common-law jurisdictions, an agreement signed after the equity has already been granted may be unenforceable without fresh consideration — meaning vesting, transfer restrictions, and buyout obligations may not apply.","Execute the agreement on or before the effective date of equity issuance. If circumstances require a later signature, document a separate benefit — additional equity, a cash payment, or enhanced vesting — as new consideration.",[405,408,411,414,417,420,423,426,429],{"question":406,"answer":407},"What is a shared equity agreement?","A shared equity agreement is a legally binding contract that defines the ownership interests two or more parties hold in a business or asset. It specifies each party's equity percentage, capital contributions, vesting terms, voting rights, profit allocations, transfer restrictions, and exit mechanics. It replaces informal handshake arrangements with enforceable written obligations and serves as the primary governance document for closely held companies and co-investment structures.\n",{"question":409,"answer":410},"Who needs a shared equity agreement?","Co-founders splitting ownership of a new company, existing business owners admitting a new equity partner, investors receiving a stake in exchange for capital, key employees receiving equity compensation, and co-investors in real estate or joint ventures all need a shared equity agreement. Any arrangement where two or more parties hold an ownership interest in the same asset should be governed by a written agreement before money or work changes hands.\n",{"question":412,"answer":413},"What is the difference between a shared equity agreement and a shareholder agreement?","A shareholder agreement typically governs the relationship between shareholders in an incorporated company — covering share classes, board composition, and corporate governance. A shared equity agreement is broader and applies to any shared ownership structure, including partnerships, LLCs, unincorporated joint ventures, and co-owned property. For incorporated companies, the two documents often overlap and may be consolidated into a single shareholders' agreement.\n",{"question":415,"answer":416},"Does a shared equity agreement need to be notarized?","In most jurisdictions, notarization is not required for a shared equity agreement to be legally binding — signatures of the parties with dated witness lines are typically sufficient. However, if the agreement involves real property equity or is being filed with a government registry, notarization may be required. Consider consulting a lawyer in your jurisdiction to confirm execution requirements before signing.\n",{"question":418,"answer":419},"What vesting schedule is standard for co-founder equity?","The most widely used structure is a 4-year vesting schedule with a 1-year cliff — meaning no equity vests during the first 12 months, then 25% vests at month 12, and the remaining 75% vests monthly over the following 36 months. This structure is standard among venture-backed startups and is typically required by institutional investors before a Series A or Seed round. Shorter vesting periods (2–3 years) are common in later-stage hires or co-founder arrangements where significant prior work has already been completed.\n",{"question":421,"answer":422},"Can equity in a shared equity agreement be transferred to a third party?","A properly drafted shared equity agreement will restrict transfers through a right of first refusal clause, requiring any holder wishing to sell their stake to offer it to the other holders first on the same terms. Transfers without following this process are typically void under the agreement. Some agreements also require board or co-holder consent for any transfer, regardless of price. Without these restrictions, equity can be sold freely to unvetted third parties.\n",{"question":424,"answer":425},"What happens when a co-owner wants to leave the business?","The buyout and exit mechanics clause governs departure. It typically gives remaining holders the right — and sometimes the obligation — to purchase the departing holder's equity at a price determined by the agreed methodology (fair market value, earnings multiple, or formula). The agreement should also specify what happens to unvested equity: standard practice is that unvested shares are forfeited or repurchased at cost. Without a clear exit clause, departing co-owners and remaining holders frequently end up in litigation.\n",{"question":427,"answer":428},"Is a shared equity agreement enforceable without a lawyer?","A well-drafted template is generally enforceable when properly executed by all parties with the required signatures, provided the terms comply with applicable law in the governing jurisdiction. However, given the financial stakes involved — equity disputes frequently involve six-figure or seven-figure interests — legal review is strongly recommended before execution. A lawyer can identify jurisdiction-specific risks, such as non-compete enforceability, securities law compliance, and tax consequences of non-cash contributions.\n",{"question":430,"answer":431},"What are the tax implications of a shared equity agreement?","Issuing equity in exchange for services can trigger immediate taxable income for the recipient in many jurisdictions unless an 83(b) election is filed within 30 days of the grant date in the US. Non-cash contributions (IP, property) may also have tax consequences for the contributing party. In Canada, equity issued to employees or service providers triggers employment income rules. Consult a tax advisor before finalizing contribution valuations and equity issuance structures — the tax cost of getting this wrong can exceed the legal cost of getting it right.\n",[433,437,441,445,449,453],{"industry":434,"icon_asset_id":435,"specifics":436},"Technology / SaaS","industry-saas","Co-founder equity splits with 4-year vesting, IP assignment cross-referenced to an invention assignment agreement, and reserved option pools sized to anticipated hiring plans.",{"industry":438,"icon_asset_id":439,"specifics":440},"Real estate","industry-real-estate","Co-ownership percentages tied to capital contributions, net operating income distributions, and buyout mechanics triggered by one partner's desire to liquidate their share.",{"industry":442,"icon_asset_id":443,"specifics":444},"Professional services","industry-professional-services","Partner admission agreements defining equity earned over a lockstep or merit-based schedule, client book-of-business non-solicitation cross-referenced to the equity terms.",{"industry":446,"icon_asset_id":447,"specifics":448},"Manufacturing","industry-manufacturing","Joint venture equity structures between a manufacturer and a distribution partner, with profit-sharing tied to production output and drag-along rights coordinated with financing covenants.",{"industry":450,"icon_asset_id":451,"specifics":452},"Creative and media","industry-marketing","Equity splits between creative founders and technical or business co-founders, with IP ownership explicitly addressed to avoid disputes over who owns content, code, or brand assets.",{"industry":454,"icon_asset_id":455,"specifics":456},"Healthcare / MedTech","industry-healthtech","Equity agreements referencing regulatory milestone vesting triggers, and transfer restrictions coordinated with licensing requirements that prohibit unapproved change of control.",[458,461,464,467],{"vs":237,"vs_template_id":459,"summary":460},"shareholders-agreement-D12714","A shareholder agreement governs the relationship between shareholders in an incorporated company — including share classes, board composition, dividend policy, and corporate governance. A shared equity agreement is more flexible and applies to any co-ownership structure, including LLCs, partnerships, and unincorporated ventures. For incorporated companies, these documents substantially overlap and are often combined into a single shareholders' agreement.",{"vs":103,"vs_template_id":462,"summary":463},"joint-venture-agreement-D165","A joint venture agreement governs a time-limited collaboration between two businesses for a specific project, typically without creating a new permanent entity. A shared equity agreement formalizes ongoing co-ownership in a venture or company, including long-term governance, vesting, and exit mechanics. Use a joint venture agreement for project-scoped partnerships; use a shared equity agreement when parties hold a permanent equity interest.",{"vs":148,"vs_template_id":465,"summary":466},"partnership-agreement-D12714","A partnership agreement governs the rights and obligations of partners in a general or limited partnership, including profit sharing, management authority, and dissolution. A shared equity agreement can apply to any ownership structure — corporation, LLC, or partnership — and focuses specifically on equity percentages, vesting, transfer restrictions, and buyout mechanics rather than day-to-day operational governance.",{"vs":248,"vs_template_id":468,"summary":469},"stock-option-plan-D12908","A stock option agreement grants the right to purchase equity at a fixed price in the future — ownership is not transferred until the option is exercised and the exercise price is paid. A shared equity agreement transfers actual ownership interest at execution, subject to vesting. Use stock options for employee incentive plans; use a shared equity agreement when the party receives direct equity ownership rather than a right to acquire it.",{"use_template":471,"template_plus_review":475,"custom_drafted":479},{"best_for":472,"cost":473,"time":474},"Early-stage co-founders or small business partners with straightforward equity splits and no immediate investor involvement","Free","1–2 hours",{"best_for":476,"cost":477,"time":478},"Businesses admitting investors, issuing equity to employees, or operating in multiple jurisdictions where local law may override template defaults","$500–$1,500","3–7 days",{"best_for":480,"cost":481,"time":482},"Venture-backed companies, complex cap tables with multiple share classes, real estate co-investments above $500K, or any arrangement with significant securities law implications","$2,000–$8,000+","2–4 weeks",[484,489,494,499],{"code":485,"name":486,"flag_asset_id":487,"note":488},"us","United States","flag-us","Equity issued in exchange for services may trigger ordinary income recognition unless an 83(b) election is filed within 30 days of grant. Securities law (SEC Regulation D) may apply even to small private equity issuances — consult a securities attorney before issuing equity to investors. Non-compete provisions within the agreement vary in enforceability by state; California courts routinely void them. Delaware law governs most VC-backed companies and provides the most developed case law for equity disputes.",{"code":490,"name":491,"flag_asset_id":492,"note":493},"ca","Canada","flag-ca","Equity issued to employees or service providers in exchange for services is typically treated as employment income under the Income Tax Act at the time of vesting, not grant. Provincial securities laws apply to equity issuances even within private companies; each province has its own exempt-market dealer rules. Quebec agreements must be drafted in French for provincially regulated entities, and Quebec civil law may interpret equity transfer restrictions differently from common-law provinces.",{"code":495,"name":496,"flag_asset_id":497,"note":498},"uk","United Kingdom","flag-uk","Equity issued to employees is subject to HMRC employment-related securities rules — EMI (Enterprise Management Incentives) schemes offer favorable tax treatment for qualifying companies but require HMRC registration. Equity agreements must comply with the Companies Act 2006 for incorporated entities. Post-Brexit, UK courts apply English law independently of EU frameworks, but cross-border equity arrangements with EU-based parties may still trigger EU securities regulations.",{"code":500,"name":501,"flag_asset_id":502,"note":503},"eu","European Union","flag-eu","Equity issuances to investors may trigger Prospectus Regulation requirements if offered to more than 149 non-qualified investors. GDPR considerations apply when equity agreements reference or process personal data of holders. Transfer restrictions and drag-along clauses are generally enforceable across member states, but enforceability details vary — German law, for example, requires notarial certification for GmbH share transfers. French SAS agreements benefit from broad contractual freedom but must not violate mandatory corporate law provisions.",[505,241,506,507,508,509,510,511,512,513,514,515],"shareholders-agreement-D1016","stock-option-plan-D13284","stock-purchase-agreement-D349","partnership-agreement-D12551","non-disclosure-agreement-nda-D12692","employment-agreement_at-will-employee-D541","employment-agreement-executive-D543","investment-proposal-D13992","founders-agreement-D12653","llc-operating-agreement-D5209","term-sheet-D473",{"emit_how_to":194,"emit_defined_term":194},{"primary_folder":96,"secondary_folder":518,"document_type":519,"industry":520,"business_stage":521,"tags":522,"confidence":527},"equity-and-mergers","agreement","general","all-stages",[523,524,525,519,526],"equity","ownership","partnership","capital-contributions",0.95,"\u003Ch2>What is a Shared Equity Agreement?\u003C/h2>\n\u003Cp>A \u003Cstrong>Shared Equity Agreement\u003C/strong> is a legally binding contract that formally allocates ownership interests among two or more parties in a business, venture, or co-owned asset. It defines each party's exact equity percentage, documents what each party contributes in exchange for that ownership, establishes how profits and losses are distributed, governs voting and decision-making authority, and sets the rules for what happens when a party wants to transfer or exit their stake. Unlike a casual handshake understanding of "who owns what," a properly drafted shared equity agreement creates enforceable rights and obligations that protect every holder from the moment it is signed.\u003C/p>\n\u003Ch2>Why You Need This Document\u003C/h2>\n\u003Cp>Without a written shared equity agreement, a co-founder who contributes nothing after month three retains the same ownership stake as one who builds the entire product. A departing investor can sell their interest to a competitor with no warning. A 10% minority holder can block a critical acquisition because voting rights were never formally defined. These are not hypothetical outcomes — they are the most common sources of business disputes and litigation among closely held companies. The financial stakes in equity disputes routinely run into six or seven figures, and courts resolve ambiguity against the party who failed to document their position. This template gives co-owners a defensible, professionally structured starting point that closes the most common gaps — vesting, transfer restrictions, buyout pricing, and governance — for the cost of an afternoon and a legal review where the stakes warrant one.\u003C/p>\n",1780924251651]