Sweat Equity Agreement ~upd~ 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.

[Date] Between: [Company Name] (“Company”) And: [Contributor Name] (“Contributor”) sweat equity agreement

Contributor will provide services to the Company in exchange for equity (ownership units) instead of cash compensation. Contributor understands that receipt of equity for services

Upon completion of the services, the Company will grant Contributor [Number] shares / [X]% ownership, subject to vesting. Upon completion of the services, the Company will

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

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

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