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Sweat Equity Operating Agreement
"I need a Sweat Equity Operating Agreement for our tech startup to bring on a senior developer who will work 20 hours per week in exchange for 5% equity vesting over 3 years, with IP protection clauses and California jurisdiction."
1. Parties: Identification of the LLC and service provider
2. Background: Context of the agreement and relationship between parties
3. Definitions: Key terms used throughout the agreement including Services, Equity Interest, Vesting Schedule
4. Services: Detailed description of services to be provided and service provider's obligations
5. Equity Compensation: Terms of equity grant, including amount, vesting schedule, and conditions
6. Representations and Warranties: Statements of fact and assurances by both parties
7. Term and Termination: Duration of agreement and conditions for termination
8. Governing Law: Applicable jurisdiction and dispute resolution procedures
1. Non-Compete and Non-Solicitation: Restrictions on competitive activities and solicitation of employees/clients
2. Intellectual Property Rights: Provisions regarding ownership and transfer of IP created during service
3. Tax Matters: Specific tax treatment, obligations, and compliance requirements
4. Confidentiality: Protection of confidential information and trade secrets
1. Schedule A - Services Description: Detailed outline of services, deliverables, and performance metrics
2. Schedule B - Vesting Schedule: Detailed timeline and conditions for equity vesting
3. Schedule C - Valuation Method: Agreed methodology for valuing equity interests
4. Appendix 1 - Operating Agreement: Reference to or copy of the LLC Operating Agreement
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