Ownership Agreement Sample

Ownership Agreement Sample: How to Protect Your Business Interests

As a business owner, protecting your assets should be a top priority. An ownership agreement is an important tool to help safeguard your business interests. It outlines the rights and responsibilities of each owner, and provides a clear framework for decision-making and conflict resolution.

If you’re unsure where to start with drafting an ownership agreement, this sample can serve as a guide. Keep in mind that every business is unique, and you should tailor your agreement to reflect your specific circumstances and needs.

Ownership Agreement Sample

This ownership agreement (“Agreement”) is made and entered into as of [DATE], by and between [COMPANY NAME], a [STATE] corporation (“Corporation”), and the following individuals (referred to collectively as “Owners”):

[OWNER NAME], residing at [ADDRESS]

[OWNER NAME], residing at [ADDRESS]

[OWNER NAME], residing at [ADDRESS]

Background

The Owners are the only shareholders of the Corporation. The purpose of this Agreement is to set forth the rights and obligations of the Owners with respect to their ownership interests in the Corporation, and to provide a mechanism for resolving disputes that may arise between the Owners.

Ownership Interests

Each Owner owns an equal percentage interest in the Corporation, as set forth below:

[OWNER NAME] – [PERCENTAGE]

[OWNER NAME] – [PERCENTAGE]

[OWNER NAME] – [PERCENTAGE]

Decision-Making

All decisions relating to the management and operation of the Corporation shall be made by a majority vote of the Owners. In order for a vote to be binding, at least two of the three Owners must participate in the vote.

Reserved Matters

The following matters require unanimous consent of the Owners:

– Amending the Corporation’s articles of incorporation or bylaws

– Approving a change in the Corporation’s business purpose

– Selling or transferring all or substantially all of the Corporation’s assets

– Dissolving the Corporation

– Filing for bankruptcy

Transfers of Ownership Interests

No Owner may sell, transfer, or pledge his or her ownership interest in the Corporation without the unanimous consent of the other Owners.

If an Owner wishes to sell his or her ownership interest, he or she must first offer the interest to the other Owners on the same terms and conditions offered by the third-party purchaser. The other Owners shall have [NUMBER] days to accept or decline the offer.

Dispute Resolution

If a dispute arises between the Owners relating to the Corporation, the dispute shall be resolved as follows:

– The disputing parties shall first attempt to resolve the matter through informal, good-faith negotiations.

– If the parties are unable to resolve the matter through negotiations, the dispute shall be submitted to mediation. If the parties are unable to agree on a mediator within [NUMBER] days of the request for mediation, the mediator shall be selected by the American Arbitration Association.

– If the parties are unable to resolve the matter through mediation, the dispute shall be submitted to binding arbitration in accordance with the rules of the American Arbitration Association. The arbitration shall be held in [CITY], [STATE], and the award rendered by the arbitrator(s) shall be final and binding on the parties.

Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of [STATE].

Conclusion

An ownership agreement is an essential tool for protecting your business interests. By clearly outlining the rights and responsibilities of each owner, you can minimize the risk of disputes and ensure that your business runs smoothly. Use this sample as a starting point to create an agreement tailored to your specific needs.

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