Equity Split Agreement Template for Canada

A comprehensive legal document governed by Canadian federal and provincial laws that establishes the distribution and management of company ownership among various stakeholders. This agreement outlines the allocation of equity shares, vesting schedules, shareholder rights and obligations, transfer restrictions, and governance mechanisms. It incorporates relevant provisions from the Canada Business Corporations Act (CBCA) and applicable provincial securities regulations, ensuring compliance with Canadian corporate law while protecting the interests of all parties involved in the ownership structure.

Typically:
i
This cost is based on prices provided by
6 legal services in your market.
With Genie AI:

£0

i
Generate and export your first
document completely free.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Get template free
Upload to review

Your data doesn't train Genie's AI

You keep IP ownership of your docs

4.6 / 5
4.6 / 5
4.8 / 5

What is a Equity Split Agreement?

An Equity Split Agreement is a crucial document used when establishing or restructuring company ownership in the Canadian business context. This agreement is particularly vital for startups, growing businesses, and companies undergoing ownership transitions. It defines how company equity is divided among founders, investors, and key employees, incorporating specific requirements under Canadian federal and provincial legislation. The document typically includes detailed provisions for share allocation, vesting schedules, transfer restrictions, and shareholder rights, while ensuring compliance with the Canada Business Corporations Act and relevant securities regulations. It's essential for protecting all stakeholders' interests and preventing future disputes over ownership and control.

What sections should be included in a Equity Split Agreement?

1. Parties: Identification of all parties entering into the agreement, including full legal names and addresses

2. Background: Context of the agreement, including company information and purpose of the equity split

3. Definitions: Detailed definitions of key terms used throughout the agreement

4. Equity Allocation: Specification of how shares or ownership interests are divided among the parties

5. Vesting Provisions: Details of vesting schedule, including timing and conditions for share vesting

6. Transfer Restrictions: Limitations and conditions on the transfer of shares

7. Shareholders' Rights: Voting rights, dividend rights, and other shareholder privileges

8. Management and Control: Decision-making authority and corporate governance provisions

9. Representations and Warranties: Statements of fact by the parties about their capacity and authority

10. Confidentiality: Provisions protecting confidential information

11. Termination: Circumstances and procedures for terminating the agreement

12. General Provisions: Standard clauses including governing law, notices, and amendments

What sections are optional to include in a Equity Split Agreement?

1. Right of First Refusal: Gives existing shareholders priority rights to purchase shares before they can be sold to third parties

2. Tag-Along Rights: Allows minority shareholders to join in the sale of shares by majority shareholders

3. Drag-Along Rights: Enables majority shareholders to force minority shareholders to join in the sale of the company

4. Anti-Dilution Protection: Protects shareholders from equity dilution in future financing rounds

5. Intellectual Property Assignment: Required when shareholders are also contributing IP to the company

6. Non-Competition and Non-Solicitation: Needed when shareholders are involved in company operations

7. Death and Disability Provisions: Procedures for handling shares in case of shareholder death or disability

8. Dispute Resolution: Specific procedures for resolving disputes, including mediation or arbitration

What schedules should be included in a Equity Split Agreement?

1. Schedule A - Share Capitalization Table: Detailed breakdown of share ownership percentages and classes

2. Schedule B - Vesting Schedule: Detailed timeline and milestones for share vesting

3. Schedule C - Shareholders' Contact Information: Complete contact details for all shareholders

4. Schedule D - Company Valuation: Current company valuation and methodology used

5. Schedule E - Share Transfer Form: Standard form for executing share transfers

6. Appendix 1 - Corporate Resolution: Board resolution approving the equity split arrangement

7. Appendix 2 - Shareholders' Rights by Share Class: Detailed breakdown of rights associated with different share classes

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Canada

Publisher

Genie AI

Document Type

Equity Agreement

Cost

Free to use

Find the exact document you need

Business Equity Agreement

A Canadian-law governed agreement establishing terms for business equity investment, including share allocation, ownership rights, and governance structure.

Download

Private Equity Management Agreement

A Canadian-law governed agreement establishing the terms and conditions for managing a private equity fund, including management responsibilities, fees, and regulatory compliance requirements.

Download

Equity Compensation Agreement

A Canadian-law governed agreement establishing terms for granting equity-based compensation to employees or other eligible participants, compliant with federal and provincial regulations.

Download

Simple Agreement For Equity

A Canadian-law governed agreement providing investors with rights to future equity in a company upon specific triggering events, commonly used in startup funding.

Download

Equity Linked Agreement

A Canadian-law governed agreement establishing terms for an investment product linked to equity performance, including calculation methods and regulatory compliance requirements.

Download

Co Founder Equity Agreement

A Canadian law-governed agreement establishing equity distribution and rights between company co-founders, including share allocation, vesting, and mutual obligations.

Download

Founder Equity Agreement

A Canadian-law governed agreement establishing equity distribution and rights between company founders, including share allocation, vesting, and founder obligations.

Download

Startup Employee Equity Agreement

A Canadian law-governed agreement outlining the terms of equity compensation granted by a startup to an employee, including shares/options, vesting, and related rights and obligations.

Download

Equity Split Agreement

A Canadian-law governed agreement that establishes the distribution and management of company ownership, including share allocation, vesting schedules, and shareholder rights.

Download

Private Equity Finder's Fee Agreement

A Canadian agreement governing finder's fee arrangements in private equity transactions, establishing terms for compensation and services while ensuring regulatory compliance.

Download

Convertible Loan Agreement Startup

A Canadian-law governed agreement for a loan that converts to equity in a startup under specified conditions, combining debt and potential equity investment features.

Download

Sweat Equity Agreement

A Canadian legal agreement governing the exchange of services for company equity, including terms for vesting, IP rights, and shareholder provisions.

Download

Equity Share Contract

A Canadian-law governed agreement establishing terms for corporate share ownership, transfer, and shareholder rights.

Download

Equity Incentive Agreement

A Canadian-law governed agreement establishing terms for granting equity-based compensation to employees or other eligible participants, including vesting conditions and regulatory compliance requirements.

Download

Equity Release Agreement

A Canadian-law governed agreement enabling property owners to access their property's equity while retaining ownership and residence rights, subject to federal and provincial regulations.

Download

Phantom Equity Agreement

A Canadian-law governed agreement establishing phantom equity compensation arrangements, providing economic benefits similar to share ownership without actual share transfer.

Download

Standby Equity Distribution Agreement

A Canadian-law governed agreement enabling listed companies to obtain equity financing through scheduled share issuances to investors at predetermined pricing mechanisms.

Download

Equity Participation Agreement

A Canadian legal agreement governing the acquisition of ownership interest in a company, detailing investment terms and shareholder rights under Canadian law.

Download

Private Equity Subscription Agreement

A Canadian-law governed agreement documenting the terms and conditions for private equity investment in a company through the subscription of shares or other securities.

Download

Equity Contribution Agreement

A Canadian law-governed agreement detailing the terms of capital contribution to a company in exchange for equity ownership, including investment terms and resulting rights.

Download

Equity Buyback Agreement

A Canadian-law agreement documenting the repurchase of shares by a corporation from its shareholders, including terms, conditions, and regulatory compliance requirements.

Download

Employee Stock Options Agreement

A Canadian legal agreement granting employees the right to purchase company shares at a set price, structured to comply with Canadian securities and tax regulations.

Download

Equity Interest Purchase Agreement

A Canadian law-governed agreement documenting the terms and conditions for the purchase and sale of equity interests in a company, including price, warranties, and closing conditions.

Download
See more related templates

Genie’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; Genie’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

We are ISO27001 certified, so your data is secure

Organizational security:

You retain IP ownership of your documents and their information

You have full control over your data and who gets to see it