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Sweat Equity Contract
"I need a Sweat Equity Contract for a senior developer joining my Singapore-based fintech startup, where they'll receive 5% equity vesting over 4 years, starting March 2025, in exchange for leading our technical development."
1. Parties: Identifies the company and the service provider/employee receiving sweat equity
2. Background: Explains the context and purpose of the sweat equity arrangement
3. Definitions: Defines key terms used throughout the agreement
4. Services: Details the services to be provided in exchange for sweat equity
5. Equity Grant Terms: Specifies the amount, type, and terms of equity being granted
6. Vesting Schedule: Outlines the timeline and conditions for equity vesting
7. Valuation: Establishes the value of services and corresponding equity
1. Non-Competition: Restricts competitive activities - use when protecting company interests from competition
2. Intellectual Property Rights: Assigns IP created during service period - use when services involve creation of IP
3. Tag-Along Rights: Rights to join in sale of shares - use when protecting minority shareholders
1. Service Description Schedule: Detailed outline of services to be provided
2. Vesting Schedule: Detailed timeline of equity vesting milestones
3. Share Valuation Report: Independent valuation of shares/equity being granted
4. Company Constitution Extract: Relevant sections of company constitution regarding share issuance
Authors
Board
Business Day
Company
Company Constitution
Confidential Information
Effective Date
Equity Interest
Fair Market Value
Fully Diluted Basis
Intellectual Property Rights
Ordinary Shares
Party/Parties
Services
Service Period
Share Capital
Shareholder
Sweat Equity Shares
Term
Termination Date
Unvested Shares
Valuation
Vested Shares
Vesting Date
Vesting Period
Vesting Schedule
Working Hours
Services
Equity Grant
Vesting
Valuation
Performance Requirements
Service Provider Obligations
Company Obligations
Representations and Warranties
Share Rights and Restrictions
Transfer Restrictions
Tag-Along Rights
Drag-Along Rights
Right of First Refusal
Confidentiality
Intellectual Property
Non-Competition
Non-Solicitation
Term and Termination
Effect of Termination
Tax Matters
Governing Law
Dispute Resolution
Force Majeure
Assignment
Notices
Entire Agreement
Amendment and Waiver
Severability
Counterparts
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