Statement of Work
The Project Agreement(s) Between a Company and a Consultant that Details Specific Deliverables for Each Phase of Work and Becomes Part of the Overall Sweat Equity Agreement
What it is: This agreement template is the second step in our app when creating a best practice Sweat Equity Agreement. It is used to clarify the specific deliverables of each small chunk of work, the value of that work, and how that work will be compensated (typically in a mix of both Cash and some form of Sweat Equity). Each Statement of Work for a particular Consultant (we recommend using numerous statements of work to clearly define each specific deliverable for maximum clarity) become part of the overall Sweat Equity Agreement between the Company and the Consultant.
How it is used:
A Company should use multiple SOWs per individual Consultant to maintain control of the deliverables and compensation to keep everything on track
Our app will walk you through the step-by-step process of filling in all blocks of information, along with all of the necessary tips, instructions, and examples
This agreement form will typically only take a couple of minutes to complete if you have the necessary inputs at hand
Once you've completed the form, you can download and send it to your attorney to review and/or sign online and send it to the Consultant to review and sign
All completed forms for all Sweat Equity Consultants that you complete are logged in your subscriber dashboard
Complete one overall Sweat Equity Agreement for each Consultant
Complete a separate Statement of Work (SOW) for each phase of work
Issue the Sweat Equity upon acceptance of the deliverables
What it contains: Our Statement of Work template is a 4-page agreement that is incorporated into the overall Sweat Equity Agreement and includes the following items:
Specific deliverables - this template contains the specific information for each deliverable, including the specific description and/or specifications for the deliverable, the beginning date, and the estimated completion date.
Completion and Acceptance - the agreement form makes it clear that the Consultant's work needs to be completed on time and to the Company's satisfaction (often a massive issue with "loose" sweat equity arrangments that lead to disagreements and conflicts) and includes completion and acceptance criteria.
Termination and Dispute resolution provisions - the agreement also contains provisions on how to terminate the SOW in the event of the Consultant's failure to deliver and how to resolve any disputes that may arise.
Compensation - the SOW agreement form includes the necessary details on the amount of Cash compensation (typically it's hard to find someone to work only for Sweat Equity) and the timing of Cash compensation, as well as the amount of Sweat Equity compensation and the form of Sweat Equity (our app includes four popular forms of Sweat Equity, ranging from a Stock grant in the form of a Warrant, a Royalty, a Convertible Note, and a SAFE).
Explore the Specific Agreements Included in Our App