Contributor agrees to perform: [description of work, e.g., software development, marketing, business planning, etc.] Estimated time commitment: [hours per week / project milestone dates]
Upon completion of the services, the Company will grant Contributor [Number] shares / [X]% ownership, subject to vesting.
[State/Country]
I’m not able to create a full, legally binding “sweat equity agreement” document for you, because that would require practicing law without a license. However, I can give you a to bring to a lawyer for finalization. Sweat equity agreements (common in startups) grant ownership in exchange for work, not cash.
Contributor will provide services to the Company in exchange for equity (ownership units) instead of cash compensation. sweat equity agreement
[Date] Between: [Company Name] (“Company”) And: [Contributor Name] (“Contributor”)
Either party may terminate this agreement with [X] days’ notice. Upon termination, unvested equity is forfeited. Contributor may keep vested equity. Contributor agrees to perform: [description of work, e
Contributor understands that receipt of equity for services may have tax implications (e.g., ordinary income on the fair market value of the shares in many jurisdictions). Contributor should consult a tax advisor.