The treaty provided the United States with sovereignty over the Canal Zone. In exchange, the Republic of Panama received a $10 million payment and additional annual payments which began with the opening of the canal. In addition to this purchase from Panama, the United States bought the title to all lands in the Canal Zone, including a payment of $40 million to the French Canal Company for their properties.
The agreement granted the United States sovereignty over the Canal Zone. In return, Panama received a $10 million payment and subsequent annual payments starting from the canal's opening. Additionally, the United States acquired all lands in the Canal Zone, including a $40 million purchase of properties from the French Canal Company.