Equity Allocation Agreement Template

Equity Allocation Agreement TemplateIt refers to a written agreement on the rights enjoyed by a company's shareholders to obtain economic benefits from the company and participate in the company's operation and management. The free version of the equity distribution agreement template is provided by Huajun Software Park for you to download. The source file is in docx format. Users can edit and modify the content by themselves. For more information about the free download of equity distribution agreement template, please pay attention to this site.

Main contents of equity distribution agreement template

(1) The name or title and domicile of the party concerned;

(2) Target;

(3) Quantity;

(4) Quality;

(5) Price or remuneration;

(6) Time limit, place and method of performance;

(7) Liability for breach of contract;

(8) Methods of resolving disputes.

Basic elements of equity distribution agreement template

A core

The core of equity allocation is to make each founder feel reasonable and fair in the process of allocation and discussion, so that he or she may even forget about the allocation afterwards and concentrate on building the company.

Two key points

First, it ensures that entrepreneurs have control over the company;

It is best for the founder to have absolute controlling rights, preferably more than 67% of the equity. If it does not reach this ratio, it must exceed 50%, because the company needs a leader who can make decisions, so that it can better control the company. The development direction can also inspire the team's confidence and motivation to make the company bigger.

The second is to maximize the value of equity (attracting partners, financing and talents).

                                                                                                                                                           “Money can gather together,” and equity represents future wealth. Only by dispersing part of the equity can outstanding partners and talents be gathered.

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The equity distribution agreement template is a free template. You can download the source file for you to edit, modify and replace. Huajun Software Park also providesemployment agreement,Equity transfer agreement templatedownload.