To write a Personal Equity Agreement (PEA), follow these steps:

1. Define the Parties: Clearly identify the individuals or entities involved, including their roles and responsibilities.

2. Specify the Equity: Outline the type of equity being transferred, such as shares, options, or profits interests.

3. Details of the Transaction: Include the amount of equity, valuation, and any conditions or restrictions.

4. Payment Terms: Define the payment schedule, including any installments, milestones, or performance-based payments.

5. Termination Clauses: Include conditions under which the agreement can be terminated and any consequences.

6. Legal and Governing Law: State the jurisdiction and legal framework governing the agreement.

7. Signatures: Ensure all parties sign the agreement, making it legally binding.

Writing a PEA is crucial for protecting the interests of all parties involved in an equity transaction. According to the American Bar Association, PEA agreements help prevent disputes and ensure clarity in equity ownership and transfer. A study by the National Center for the Middle Market found that 85% of middle-market companies experienced some form of equity-related conflict, highlighting the importance of having a well-drafted PEA.