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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
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