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How to write your Equity Investment Contract

We include this 3 page template with IT/Software/Hardware Contract Pack and the Proposal Kit Professional. You will get more content and software automation for data merging, managing client documents, and creating proposals with line item quoting with a Contract Pack or the Professional.

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The Equity Investment Agreement is used when you are trading with another company your goods and/or services for an equity stake in their company. For example, if you are trading your development services for a percentage stake of preferred shares in a new startup.
Document Length: 3 Pages
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1. Get IT/Software/Hardware Contract Pack or the single template that includes this business contract document.

We include this contract in editable Word format that can be customized using your office software.

2. Download and install after ordering.

Once you have ordered and downloaded your template or pack, you will have all the content you need to get started.

3. Customize the contract template with your information.

You can customize the contract document as much as you need. If you get a Contract Pack or Professional Bundle, you can also use the included Wizard software to automate name/address data merging.

Equity Investment Contract

Writing the Equity Investment Contract document

THIS AGREEMENT is made this Current Day day of Current Month, Current Year by and between Company Name ("Company") and Company Name ("Customer").

In consideration of the mutual covenants set forth in this Agreement, Customer and Company hereby agree to an exchange of equity in the party is trading equity, Customer or Company for Insert the service, product, or other description of what is being traded under the following terms and conditions:

General Terms

Company shall, during the Term (as defined below) accept from Customer, as a substitution for compensation, equity in the form of Insert relevant information about the types of shares or transfer of such here. Examples include: # Shares of Series E Preferred Stock, at $price per share and in accordance with the Company Common Stock Agreement, attached hereafter, etc. For all of Company's services under this Agreement, Customer shall compensate Company, in (cash/equity), pursuant to the terms of Exhibit A attached hereto.

Exhibit A should include whether the compensation is 100% in equity or a combination of the two.

An example of such would be as follows:

"For all of Company's services under this Agreement, Customer shall compensate Company at $80/hour, of which $60 shall be made in the form of cash and $20 shall be made in equity in the form of stock. Insert relevant information about the types of shares or transfer of such here. Example: Shares of Series E Preferred Stock, subject to adjustment for dilution, in accordance with the Company Common Stock Agreement.

Term of Service

Term of this Agreement shall commence on Start Date and shall continue in full force and effect until terminated by either party upon at least ninety (90) days prior written notice. Absent a termination notice, no event (except breach) may terminate this Agreement prior to End Date.

Exempt Expenses, Fees, or Licenses

Company will be reimbursed in cash for any expenses incurred in connection with the Services or work performed, subject to Customer's prior approval of such expenses.

General Provisions

Entire Agreement

This Agreement contains the entire agreement between the parties relating to the subject matter hereof and supersedes any and all prior agreements or understandings, written or oral, between the parties related to the subject matter hereof. No modification of this Agreement shall be valid unless made in writing and signed by both of the parties hereto.

1 Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of State. Exclusive jurisdiction and venue shall be in the County County, State Superior Court.

2 Binding Effect

This Agreement shall be binding upon and inure to the benefit of Customer and Company and their respective successors and assigns, provided that Company may not assign any of these obligations under this Agreement without Customer's prior written consent.

3 Waiver

The waiver by either party of any breach or failure to enforce any of the terms and conditions of this Agreement at any time shall not in any way affect, limit, or waive such party's right thereafter to enforce and compel strict compliance with every term and condition of this Agreement.

4 Good Faith

Each party represents and warrants to the other that such party has acted in good faith, and agrees to continue to so act, in the negotiation, execution, delivery, performance, and any termination of this Agreement.

5 No Right to Assign

Company has no right to assign, sell, modify, or otherwise alter this Agreement, except upon the express written advance approval of Customer, which consent can be withheld for any reason. Customer may freely assign Customer's rights and obligations under this agreement.

6 Payments

In the event Customer fails to make any of the payments set forth on Exhibit A within the time prescribed in Exhibit A, Company has the right to withhold Services, remove work product from Company-owned resources, or seek legal remedy until payment in full is received, plus accrued late charges of 1 1/2% per month.

7 Mutual Nondisclosure of Compensation

Both parties agree not to disclose to any third party the compensation terms contained within this Agreement. Neither party shall be held responsible for information that has been made available to the public as a requirement of the Company Common Stock Agreement.

8 Attorney's Fees

In the event any party to this Agreement employs an attorney to enforce any of the terms of the Agreement, the prevailing party shall be entitled to recover its actual attorney's fees and costs, including expert witness fees. The parties represent and warrant that, on the date first written above, they are authorized to enter into this Agreement in its entirety and duly bind their respective principals by their signatures below.

The complete Equity Investment Contract - with the actual formatting and layout - is available as a single template or as part of a library of related templates in a Contract Pack or the Professional Bundle.
Equity Investment Contract

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Key Takeaways

  • The Equity Investment Contract is available as a ready-to-edit template.
  • The Contract Packs and Professional Bundle include many related agreements and documents.
  • You can automate financials and data merging into contracts using a Contract Pack or Professional Bundle.
  • You can also create business proposals and integrate your contracts using the Professional Bundle.
  • There are no ongoing subscription fees. You get lifetime unlimited use.

How to Build a Legal Contract with Proposal Kit

This video illustrates how to create a legal contract using the Proposal Pack Wizard software. It also shows how to create a proposal with an invoice and contract at the same time.

Frequently Asked Questions

How do I customize this contract to fit my business needs?

Customizing this contract involves editing the document to include your business details, terms, and conditions. The templates are designed to be flexible, allowing you to insert your company's name, address, and other relevant information. You can modify clauses to reflect your unique business practices and legal requirements.

Is this contract compliant with laws and regulations?

The legal contract templates are written by legal professionals and designed to comply with current laws and regulations at the time of their writing. However, laws can vary by jurisdiction and change over time, so it's recommended to have your contract reviewed by a local attorney to ensure it meets all legal requirements specific to your region and industry. Templates are licensed as self-help information and not as legal advice.

Can I use the same contract for different clients or projects?

You can use the same contract for different clients or projects. The templates are versatile and easily adapted for various scenarios. You will need to update specific details such as client names, project descriptions, and any unique terms for each new agreement to ensure that each contract accurately reflects the particulars of the individual client or project.

What should I do if I encounter a clause or term I don't understand?

If you encounter a clause or term in the contract that you need help understanding, you can refer to guidance notes explaining each section's purpose and use. For more complex or unclear terms, it's advisable to consult with a legal professional who can explain the clause and help you determine if any modifications are necessary to suit your specific needs.

How do I ensure that the contract is legally binding and enforceable?

To ensure that the contract is legally binding and enforceable, follow these steps:

  • Complete all relevant sections: Make sure all blanks are filled in with accurate information.
  • Include all necessary terms and conditions: Ensure that all essential elements, such as payment terms, deliverables, timelines, and responsibilities, are clearly defined.
  • Signatures: Both parties must sign the contract, and it is often recommended that the contract be witnessed or notarized, depending on the legal requirements in your jurisdiction.
  • Consult a legal professional: Before finalizing the contract, have it reviewed by an attorney to ensure it complies with applicable laws and protects your interests.

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Disclaimers

Proposal Kit, Inc. makes no warranty and accepts no responsibility for the suitability of any materials to the licensee's business. Proposal Kit, Inc. assumes no responsibility or liability for errors or inaccuracies. Licensee accepts all responsibility for the results obtained. The information included is not legal advice. Names in use cases have been fictionalized. Your use of the contract template and any purchased packages constitutes acceptance and understanding of these disclaimers and terms and conditions.

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