Main contents of equity distribution agreement template
(1) The name and address 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 grasp the company's development direction, and can also inspire the team's confidence and motivation to expand the company.
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.
The editor recommends:
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.
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