Share Distribution Contract

This Share Distribution Contract ("Contract") is entered into as of [Date], by and between:

Shareholder 1:

Name: [Shareholder 1 Name]

Address: [Shareholder 1 Address]

Email: [Shareholder 1 Email]

Phone: [Shareholder 1 Phone]

Shareholder 2:

Name: [Shareholder 2 Name]

Address: [Shareholder 2 Address]

Email: [Shareholder 2 Email]

Phone: [Shareholder 2 Phone]

(collectively referred to as "Shareholders" or individually as "Shareholder")

Recitals:

1. The Shareholders have recently established a company named [Company Name] ("Company") as
[Type of Business Entity] under the laws of [Jurisdiction].

2. The Shareholders intend to remain as the sole co-owners of the Company and do not intend to issue
shares to external investors.

3. The Shareholders desire to formalize the ownership structure, rights, and responsibilities governing
their relationship as co-owners of the Company.
In consideration of the mutual promises and covenants contained herein, the Shareholders agree as
follows:

1. Ownership Percentage:

a. Shareholder 1 shall hold [Ownership Percentage]% of the Company's ownership.

b. Shareholder 2 shall hold [Ownership Percentage]% of the Company's ownership.

2. Management and Decision Making:

a. The Shareholders agree to equally share the management responsibilities of the Company.

b. Major decisions related to the Company's operations, business strategies, financial matters, and
acquisitions shall require mutual consent of both Shareholders.

3. Financial Contributions:

a. Each Shareholder shall make initial capital contributions towards the operating expenses and capital
requirements of the Company as follows:

- Shareholder 1: [Initial Contribution Amount]

- Shareholder 2: [Initial Contribution Amount]

b. Additional capital contributions may be required as mutually agreed upon by the Shareholders for
the growth and development of the Company.

4. Distribution of Profits and Losses:

a. Profits and losses of the Company shall be shared by the Shareholders in proportion to their
ownership percentages.

b. Distribution of profits shall be made on [Frequency] basis, subject to accounting and financial
review.

5. Transfer of Ownership:

a. Neither Shareholder may transfer, sell, or assign their ownership interest in the Company to any
third party without the express written consent of the other Shareholder.

b. In the event of a proposed transfer, the non-transferring Shareholder shall have the first right of
refusal to purchase the shares at the fair market value determined by a mutually agreed upon method.
6. Dispute Resolution:

a. Any disputes arising under or in connection with this Contract shall be resolved through mediation,
with the mediator appointed by mutual agreement of the Shareholders.

b. If mediation does not resolve the dispute, it shall be referred to binding arbitration in accordance
with the rules of [Arbitration Institution].

7. Governing Law:

This Contract shall be governed by and construed in accordance with the laws of [Jurisdiction].

8. Entire Agreement:

This Contract constitutes the entire agreement between the Shareholders concerning the subject
matter herein and supersedes all prior agreements and understandings, whether written or oral.

IN WITNESS WHEREOF, the Shareholders have executed this Share Distribution Contract as of the date
first above written.

Shareholder 1: Shareholder 2:

Signature: Signature:

Print Name: [Shareholder 1 Name] Print Name: [Shareholder 2 Name]

Date: Date:

Share Distribution Contract

This Share Distribution Contract ("Contract") is entered into as of [Date], by and between:

Shareholder 1:

Name: [Shareholder 1 Name]

Address: [Shareholder 1 Address]

Email: [Shareholder 1 Email]

Phone: [Shareholder 1 Phone]

Shareholder 2:

Name: [Shareholder 2 Name]

Address: [Shareholder 2 Address]

Email: [Shareholder 2 Email]

Phone: [Shareholder 2 Phone]

(collectively referred to as "Shareholders" or individually as "Shareholder")

Recitals:

1. The Shareholders have recently established a company named [Company Name] ("Company") as
[Type of Business Entity] under the laws of [Jurisdiction].

2. The Shareholders intend to remain as the sole co-owners of the Company and do not intend to issue
shares to external investors.

3. The Shareholders desire to formalize the ownership structure, rights, and responsibilities governing
their relationship as co-owners of the Company.

In consideration of the mutual promises and covenants contained herein, the Shareholders agree as
follows:

1. Ownership Percentage:

a. Shareholder 1 shall hold [Ownership Percentage]% of the Company's ownership.

b. Shareholder 2 shall hold [Ownership Percentage]% of the Company's ownership.

2. Management and Decision Making:

a. The Shareholders agree to equally share the management responsibilities of the Company.

b. Major decisions related to the Company's operations, business strategies, financial matters, and
acquisitions shall require mutual consent of both Shareholders.

3. Financial Contributions:

a. Each Shareholder shall make initial capital contributions towards the operating expenses and capital
requirements of the Company as follows:

- Shareholder 1: [Initial Contribution Amount]

- Shareholder 2: [Initial Contribution Amount]

b. Additional capital contributions may be required as mutually agreed upon by the Shareholders for
the growth and development of the Company.

4. Distribution of Profits and Losses:

a. Profits and losses of the Company shall be shared by the Shareholders in proportion to their
ownership percentages.

b. Distribution of profits shall be made on [Frequency] basis, subject to accounting and financial
review.

5. Transfer of Ownership:

a. Neither Shareholder may transfer, sell, or assign their ownership interest in the Company to any
third party without the express written consent of the other Shareholder.

b. In the event of a proposed transfer, the non-transferring Shareholder shall have the first right of
refusal to purchase the shares at the fair market value determined by a mutually agreed upon method.

6. Dispute Resolution:

a. Any disputes arising under or in connection with this Contract shall be resolved through mediation,
with the mediator appointed by mutual agreement of the Shareholders.

b. If mediation does not resolve the dispute, it shall be referred to binding arbitration in accordance
with the rules of [Arbitration Institution].

7. Governing Law:
 This Contract shall be governed by and construed in accordance with the laws of [Jurisdiction].

8. Entire Agreement:

This Contract constitutes the entire agreement between the Shareholders concerning the subject
matter herein and supersedes all prior agreements and understandings, whether written or oral.

IN WITNESS WHEREOF, the Shareholders have executed this Share Distribution Contract as of the date
first above written.

Shareholder 1: Shareholder 2:

Signature: Signature:

Print Name: [Shareholder 1 Name] Print Name: [Shareholder 2 Name]

Date: Date:

Yes, two shareholders who have just opened a company can enter into a share distribution contract,
even if the company has not yet issued shares to the public. In this scenario, the share distribution
contract would outline the ownership rights and responsibilities of each shareholder in the newly
formed company.

The share distribution contract between the two shareholders can address important details such as:

1. Percentage of Ownership: The contract can specify the percentage of ownership that each
shareholder holds in the company. This is important for determining each shareholder's voting rights
and share of profits or losses.

2. Voting Rights: The contract can outline how voting rights will be allocated among the shareholders.
This includes decisions on company operations, strategic direction, and major corporate transactions.
3. Transfer of Shares: The contract can specify whether and how shares can be transferred between the
shareholders or to third parties. This helps regulate the process of changing ownership interests in the
company.

4. Responsibilities and Obligations: The contract can detail the responsibilities and obligations of each
shareholder in terms of their roles within the company, financial contributions, and any specific duties
they are expected to perform.

5. Dispute Resolution: The contract can include provisions for resolving disputes between the
shareholders, such as through mediation, arbitration, or other means to avoid conflicts that could harm
the company.

While a share distribution contract between two shareholders of a newly formed company may not
involve the issuance of shares to external investors, it is still a valuable document that helps establish
the framework for their relationship as co-owners of the business. This contract can provide clarity on
each shareholder's rights and obligations, helping to prevent misunderstandings and potential conflicts
in the future.