Paying for top Talent as a Startup can be Difficult
Startups in critical growth phases often struggle to balance tight budgets with the need to attract and remunerate top-tier talent. They will often seek sweat equity arrangements, where workers provide labour in exchange for equity in the company. However, they usually do not document these arrangements carefully enough.
How do you Mitigate the Risks?
You want to incentivise your early and long-term hires, but you need to ensure your company’s best interests are protected, particularly considering that working relationships don’t always work out. The worker may perform poorly, or they may want to leave before they’ve fully delivered. Sometimes, a change in personal circumstances or a change in the company’s direction may make the arrangement unsuitable to one or both parties.
Proceed confidently with a bullet-proof arrangement
Our lawyers are experts in sweat equity, having drafted agreements for a multitude of high-growth startups and SMEs. We tailor arrangements to your needs and include important protections:
- Precise commercial terms and vesting schedules to break things up to quantifiable milestones
- Clear termination mechanics to cater for different scenarios
- Special exit event provisions for when the business is sold
- Valuation methods to facilitate buybacks or resolve disputes
Frequently asked questions
Can I do this myself?
Are your documents automatically generated?
Is the price a fixed-fee?
Can I speak or meet with a lawyer, and will this cost extra?
What if I need this urgently?
This package doesn’t suit me, can I create my own one?
What if the document or advice I need isn’t on the website?
Sweat equity agreement
- Free consultation
- Done for you tailored legal documents to suit your needs
- Initial drafting and review + one round of amendments
- Practical legal advice
- Fast turnaround times (5-7 days)
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