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Sweat Equity Partnership Agreement
"I need a Sweat Equity Partnership Agreement for my technology consulting firm to bring in a senior developer as a partner, where they will contribute 20 hours per week of development work in exchange for a 15% partnership stake that vests over 3 years starting January 2025."
1. Parties: Identification and details of all parties to the agreement
2. Background: Context and purpose of the agreement
3. Definitions: Key terms used throughout the agreement
4. Sweat Equity Contribution: Details of services/work to be provided as equity contribution
5. Equity Structure: Partnership shares and ownership arrangement
6. Vesting Schedule: Timeline and conditions for equity vesting
7. Partner Rights and Obligations: Core responsibilities and rights of partners
8. Governance: Decision-making processes and management structure
9. Exit Provisions: Terms for partner departure or agreement termination
1. Non-Compete Provisions: Restrictions on competitive activities when protecting business interests from partner competition
2. Intellectual Property Rights: IP ownership and transfer provisions when IP is created or transferred as part of the partnership
3. Additional Capital Contributions: Terms for future capital investments when future funding might be needed
1. Schedule 1: Services Description: Detailed outline of sweat equity services to be provided
2. Schedule 2: Vesting Schedule: Detailed timeline and milestones for equity vesting
3. Schedule 3: Valuation Methodology: Agreed method for valuing sweat equity contribution
4. Schedule 4: Business Plan: Partnership objectives and strategic plans
5. Appendix A: Partner Details: Detailed information about each partner
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