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1. Parties: Identification of all parties to the agreement including the company, existing shareholders, and the service provider
2. Background: Context of the agreement, including company status and reason for sweat equity arrangement
3. Definitions: Definitions of key terms used throughout the agreement
4. Services: Detailed description of services to be provided by the service provider
5. Equity Grant: Details of the equity to be granted, including percentage, class of shares, and vesting schedule
6. Vesting Schedule: Specific timeline and conditions for the vesting of equity
7. Valuation: Agreed method for valuing services and corresponding equity
8. Representations and Warranties: Statements of fact and assurances from all parties
9. Confidentiality: Provisions regarding confidential information protection
10. Intellectual Property Rights: Assignment and protection of IP created during the service period
11. Term and Termination: Duration of agreement and conditions for termination
12. Consequences of Termination: Effects of termination on unvested equity and ongoing obligations
13. General Provisions: Standard legal provisions including notices, amendments, and governing law
1. Non-Competition: Restrictions on competing activities, used when service provider will have access to sensitive business information
2. Tag-Along Rights: Rights of the service provider to join in sale of shares by other shareholders, included for additional protection
3. Drag-Along Rights: Rights of majority shareholders to force minority shareholders to join in sale, included for company protection
4. Board Representation: Rights to board representation if significant equity is granted
5. Death and Incapacity: Provisions dealing with death or incapacity of service provider, important for high-risk ventures
6. Alternative Dispute Resolution: Specific procedures for dispute resolution, recommended for international arrangements
7. Tax Provisions: Specific tax-related provisions and responsibilities, important when tax implications are significant
1. Schedule 1: Service Description: Detailed scope of services, deliverables, and performance metrics
2. Schedule 2: Vesting Schedule: Detailed timeline and milestones for equity vesting
3. Schedule 3: Share Capital Structure: Current and post-investment share capital structure
4. Schedule 4: Valuation Methodology: Agreed method and formulas for valuing services and equity
5. Schedule 5: Key Performance Indicators: Specific performance metrics tied to vesting conditions
6. Appendix A: Company Information: Key company information including registration details and current shareholding
7. Appendix B: Service Provider's Qualifications: Relevant qualifications and experience of the service provider
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