[Date] Between: [Company Name] (“Company”) And: [Contributor Name] (“Contributor”)
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.
Below is a of a typical sweat equity agreement. You would need to customize it for your jurisdiction and specific situation. SWEAT EQUITY AGREEMENT sweat equity agreement
All work product created by Contributor for the Company is the sole property of the Company. Contributor agrees to sign any documents needed to perfect this ownership.
Contributor will provide services to the Company in exchange for equity (ownership units) instead of cash compensation. You would need to customize it for your
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. Contributor will provide services to the Company in
Either party may terminate this agreement with [X] days’ notice. Upon termination, unvested equity is forfeited. Contributor may keep vested equity.