Insights

Joint Venture Agreement Template

Published

Hand signing a document with a fountain pen.

This working template organizes the parties, contributions, ownership, financing, expenses, term and compensation terms for a proposed joint venture. Replace every bracketed field with the actual deal information. Have qualified counsel review the completed terms and applicable requirements before anyone signs.

Joint Venture Agreement Template

Date: [MONTH AND DAY], [YEAR]

Parties: [YOUR NAME OR COMPANY NAME] and [PARTNER NAME OR PARTNER COMPANY NAME]

Recitals

The Joint Venturers agree to make contributions to a common fund for acquiring and holding [PROJECT NAME OR PROJECT DETAILS], called the business interest. Record why the parties are using a nominee, if applicable, and identify the titleholder and each participating interest.

Purpose

The Joint Venturers form this venture to acquire and hold the business interest in common and to provide the finances required for its acquisition. State each party’s undivided fractional interest and name the agent or nominee who will hold the interest for the parties.

Contributions

List each Joint Venturer and the contribution received for the venture:

[DETAILS ABOUT EACH PARTY AND THEIR CONTRIBUTIONS]

Acquisition of Business Interest

State who may acquire and hold the business interest, the purchase price and the payment structure:

  • Total price: $[AMOUNT]
  • Cash at closing: $[AMOUNT]
  • Note balance: $[AMOUNT]
  • Interest rate: [RATE]%
  • Due date and prepayment terms: [DATE AND TERMS]
  • Security: [DETAILS OF SECURITY]

Profits

Describe how the agent will hold and distribute net profits during the term of the venture or while the parties own the business interest:

[NAME, PROPORTION AND DISTRIBUTION DETAILS]

Expenses of Venture

State which losses and disbursements the parties will pay, when payment is due and the ratio used to allocate each expense. This approach allocates these costs according to each party’s contribution relative to total contributions; confirm whether it fits this venture.

Liability of Agent

Define the agent’s responsibilities and the limits the parties intend to apply. The provision addresses the agent’s own willful misfeasance and bad faith; counsel should adapt it to the governing agreement and applicable law.

Term

Specify when the agreement ends, including whether termination occurs after receipt and distribution of final net profits or by mutual assent of all Joint Venturers. Record any additional termination event the parties need.

Compensation of Agent

State whether the agent receives compensation for services and how a later change would be approved. This template leaves compensation unpaid unless the parties later agree otherwise.

Signatures

[NAME ONE] ____________________ [DATE]

[NAME TWO] ____________________ [DATE]

[NAME THREE] ____________________ [DATE]

[NAME FOUR] ____________________ [DATE]

Request a complimentary one-hour conversation with a senior advisor who is an experienced operator. Talk through your next move.