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Sweat Equity Agreement
"I need a Sweat Equity Agreement for a senior software developer who will receive 5% equity in my Irish tech startup, vesting over 4 years with a 1-year cliff, in exchange for developing our core product platform starting January 2025."
1. Parties: Identification of the Company and the Service Provider
2. Background: Context of the agreement, including the company's business and the service provider's expertise
3. Definitions: Key terms used throughout the agreement
4. Services: Detailed description of the services to be provided
5. Equity Compensation: Details of the equity stake being offered, including number of shares, class of shares, and percentage of ownership
6. Vesting Schedule: Timeline and conditions for the vesting of equity
7. Service Provider's Obligations: Commitments, responsibilities, and performance standards
8. Company's Obligations: Company's commitments regarding equity issuance and support
9. Representations and Warranties: Standard declarations by both parties
10. Confidentiality: Protection of company information and trade secrets
11. Intellectual Property Rights: Ownership and transfer of IP created during the service period
12. Term and Termination: Duration of the agreement and circumstances for termination
13. General Provisions: Standard boilerplate clauses including governing law, notices, and entire agreement
1. Non-Competition: Restrictions on competing activities, recommended when the service provider will have access to sensitive business information
2. Non-Solicitation: Restrictions on soliciting employees or customers, useful for service providers in client-facing roles
3. Board Observer Rights: Rights to attend board meetings, relevant for significant equity stakes
4. Tag-Along Rights: Rights to participate in future sale of shares, important for substantial equity positions
5. Drag-Along Rights: Company's right to force service provider to sell shares, useful for future company sale scenarios
6. Tax Provisions: Specific tax treatment and obligations, important when complex tax implications exist
7. Employment Status: Clarification of independent contractor vs. employee status, important when relationship status needs explicit definition
1. Schedule 1 - Services Description: Detailed scope of services to be provided
2. Schedule 2 - Vesting Schedule: Detailed breakdown of vesting timeline and milestones
3. Schedule 3 - Share Details: Specific information about the shares including class, rights, and restrictions
4. Schedule 4 - Performance Metrics: Specific KPIs or performance standards if applicable
5. Schedule 5 - Company Capitalization Table: Current and post-issuance capitalization structure
6. Appendix A - Share Certificate: Pro-forma share certificate
7. Appendix B - Board Resolution: Copy of board resolution approving the equity issuance
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Technology
Software Development
Financial Services
Professional Services
Healthcare
E-commerce
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Clean Energy
Manufacturing
Consulting
Real Estate
Education Technology
Digital Marketing
Artificial Intelligence
Legal
Human Resources
Finance
Executive Leadership
Board of Directors
Corporate Development
Company Secretariat
Startup Founder
Technical Co-founder
Chief Technology Officer
Software Developer
Business Development Consultant
Marketing Strategist
Financial Advisor
Product Manager
UX Designer
Operations Director
Sales Executive
Content Strategist
Technical Architect
Data Scientist
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Industry Expert
Growth Hacker
Digital Marketing Specialist
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