A partner’s equity contract is an official as well as legal document drafted when an individual referred to as an equity partner joins as a part owner in a business started by another individual referred to as the owner. The equity partner has no part in controlling or managing the business. The details mentioned in the contract include details like the percentage of profit the equity partner is entitled to.
Sample Partners Equity Contract
Partners Equity Contract Number: EP 4567
Effective date of contract: 10th June 2011
This partner’s equity contract has been drafted and entered into between Tom Moody referred to as the equity partner and Jose Payne referred to as the owner. As per this contract the equity partner holds limited partnership in the business owned by the owner under the organization name:
Gas Garments Limited
With principal business address being located at:
31 Jane Austen Road
New York, New Jersey 3456.
The terms and conditions to be agreed upon by the equity partner are as follows:
- The equity partner will have no control in the decision making or management of the company.
- The equity partner has to contribute in cash an amount of $10000 as the capital of the business.
- The distribution of profits will in proportion to the capital amount brought in by the equity partner. The liability of the equity partner is also limited to the amount of investment made.
In agreement to the above terms and conditions:
Signature of the equity partner: Signature of the owner:
Tom Moody Jose Payne