I live out of country but I am doing a startup in the US and have some operating Executives coming on board to operate the Day to Day operations in the US
We have a few claused that need to be ammended to the standard Sweat equity agreement
1. They will be given a draw of X% of the monthly Net Profit, with 75% paid in Cash and 25% held to be applied the the purchase of share after a 12 month period
2. If they are terminated for non-performance less that 10% growth in revenue per month for 2 consecutive months for the 12 month period, The CEO can terminate the contract and they forfit the amount withheld/
3. At the maturity date, the company is valued at 1.6 times profit for the previous 12 months, share value is determined by that amount divided by total shares of 30,000. the funds that have been held can be applied to the purchase of shares, at that valuation.
4. They are then converted to salary, at the average amount paid in cash as a draw monthly.
Is there someone that can put these statements into the proper legal terms and ammend then to a standard Sweat Equity Agreement
We have a few claused that need to be ammended to the standard Sweat equity agreement
1. They will be given a draw of X% of the monthly Net Profit, with 75% paid in Cash and 25% held to be applied the the purchase of share after a 12 month period
2. If they are terminated for non-performance less that 10% growth in revenue per month for 2 consecutive months for the 12 month period, The CEO can terminate the contract and they forfit the amount withheld/
3. At the maturity date, the company is valued at 1.6 times profit for the previous 12 months, share value is determined by that amount divided by total shares of 30,000. the funds that have been held can be applied to the purchase of shares, at that valuation.
4. They are then converted to salary, at the average amount paid in cash as a draw monthly.
Is there someone that can put these statements into the proper legal terms and ammend then to a standard Sweat Equity Agreement
