Equity Split Clause Samples
An Equity Split clause defines how ownership shares in a company or project are divided among founders, investors, or other stakeholders. It typically specifies the percentage of equity each party receives, and may address issues such as vesting schedules, dilution, or adjustments in the event of new investment. The core function of this clause is to ensure transparency and prevent disputes by clearly outlining each party’s stake, thereby allocating ownership and associated rights from the outset.
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Equity Split. Upon formation of the Company, the entire issued share ownership of the Company will be split [Describe the initial equity split as envisioned by the founding team, e.g., “equally” “10% to Founder A, 90% to Founder B,” etc.], but in all instances shall be reached by consensus of the Founders. Should the Founders wish to reserve any portion of the shares for future employees or for an option share pool, any such portion of shares reserved will dilute all Founders equally.3
Equity Split. (a) In addition to the payments made to Developer under the operative offtake agreement, the Developer and its affiliates shall maintain at least an 80% interest in the Desal Plant (“Developer Equity”). White Mountain shall receive no greater than 20% interest in the Desal Plant (“White Mountain Equity”). The Parties agree that the Equity Split may be structured in any manner determined appropriate by the Developer and or its affiliates, in their sole discretion, which may include, among other things, a direct equity interest in Desal Plant, an interest in the profits of the Desal Plant, or any other interest which provides Developer with a direct or indirect interest in the Desal Plant.
(b) In the event that the Parties determine that debt financing for the Desal Plant would be in the best interests of all the Parties, Developer and White Mountain will negotiate in good faith to determine an equity split which is within industry standards for such a debt financed project.
Equity Split a) The Parties agree that on closing of the Transaction, the fully diluted common stock equity structure of Purchaser on a post-Transaction basis (the “Resulting Issuer”) will result in the current shareholders of Purchaser owning no less than 6.5% (32,500,000) of the Resulting Issuer listed securities upon completion of the Transaction.
b) The Purchaser currently has 60,449,859 shares of common stock issued and outstanding and agrees, if necessary, that prior to completion of the Transaction it shall: (i) undertake a reverse-split (a “Consolidation”) acceptable to Seller.
c) The Purchaser shall create two new classes of convertible preferred stock designated as Preferred “A” and Preferred “B” each with the following attributes: (i) 20,000,000 Preferred “A” shares which shall pay cumulative dividends to be determined per share annually with the right to convert such preferred shares to common stock at a rate per Preferred “A” share of $1 per share and such shares are redeemable by and at the election of the Resulting Issuer for $1 per share after one year; and (ii) to 5,000,000 Preferred “B” shares which shall pay cumulative dividends of $.10 per share annually with the right to convert such preferred shares to common stock at a rate per Preferred “B” share of $1per share, and such shares are redeemable by and at the election of the Resulting Issuer at a share price to be determined and after one year from the date of this Agreement or other agreed to term. The Preferred “A” and/or the Preferred “B” shares shall rank senior to the Common Stock, with Preferred B shares senior to Preferred A shares, with respect to dividends and liquidation rights. The specific designations of the convertible Preferred A and convertible Preferred B shares shall be set forth in the Certificate of Designation of each class of shares, as the parties may determine.