A partners’ equity agreement is created between two parties or investors where the ownership of the property or project is split between two owners and the returns from the project will be divided among the partners, who own equity in the business, either equally or at a particular ratio.
Sample Partners’ Equity Agreement
This partner’s equity partnership agreement is made on August 13, 2011 in California between PARTY 1 and PARTY 2.
PARTY 1 DETAILS:
Name: Recent Miners Pvt Ltd
Address: 34 Green Road, California
Phone number: 239432400
PARTY 2 DETAILS:
Name: Cain Miners Inc
Address: 23 Blue Road, California
Phone number: 28492300
DURATION OF AGREEMENT: 2 years
TERMS AND CONDITIONS:
As per the agreement, PARTY 1 and PARTY 2 agree to enter an equity agreement whereby they agree to invest $100,000 each in the development of a coal mine located in 34 Black Valley, California.
Both parties shall be responsible for employing labourers and various equipment, materials and processes needed for the extraction of coal in an economically viable way and refining it for use for commercial purposes.
The profits from the sale of coal shall be divided among PARTY 1 and PARTY 2 in ratio of 50: 50.
Both parties hold the equal rights to the equity.
The shareholders of the companies of both PARTY 1 and PARTY 2 also give consent to the agreement.
Any changes to the agreement must be followed by a written agreement which must be agreed upon by both parties.