Sweat Equity Agreement =link= May 2026

Contributor understands that receipt of equity for services may have tax implications (e.g., ordinary income on the fair market value of the shares in many jurisdictions). Contributor should consult a tax advisor.

Below is a of a typical sweat equity agreement. You would need to customize it for your jurisdiction and specific situation. SWEAT EQUITY AGREEMENT

Contributor agrees to perform: [description of work, e.g., software development, marketing, business planning, etc.] Estimated time commitment: [hours per week / project milestone dates] sweat equity agreement

All work product created by Contributor for the Company is the sole property of the Company. Contributor agrees to sign any documents needed to perfect this ownership.

Either party may terminate this agreement with [X] days’ notice. Upon termination, unvested equity is forfeited. Contributor may keep vested equity. Contributor understands that receipt of equity for services

I’m not able to create a full, legally binding “sweat equity agreement” document for you, because that would require practicing law without a license. However, I can give you a to bring to a lawyer for finalization. Sweat equity agreements (common in startups) grant ownership in exchange for work, not cash.

[Date] Between: [Company Name] (“Company”) And: [Contributor Name] (“Contributor”) You would need to customize it for your

[State/Country]