SWEAT EQUITY - WHATS THE DEAL?

In some instances you may agree to work on a 'sweat equity' or combination of cash and equity deal.

You still charge us the same rate / price (as agreed in your PO), but we pay you in equity (shares in the company you are doing the work for).

1. New Supplier Application we issue your PO it will clearly define the payment terms (e.g. to be paid 100% in equity or 50% equity and 50% cash).
2. send (the relevant company / that issued the PO) an invoice for the goods / services you are going to deliver (as you normally would).
3. The relevant company / product then add's your invoice to its aged creditor list and it will sit on the balance sheet as a debt due to to be paid to you until the next funding round closes (you will be advised on timescales as part of the initial agreement).
4. When that company / product has its next investment round your invoice will be paid in shares to the same amount at the valuation advertised to investors for that round.
5. Share certificates will be issued to you along with all the other investors (this normally takes 8 weeks to process after the round has closed).
6. Your shares will be formally registered at Companies House and you will be bound by the same agreement as the other investors (you will get a copy of the Share Holders Agreement and you can access the Articles of Association from Companies House).
7. Thereafter will receive regular shareholder updates along with all other shareholders and you will be a real / regular shareholder / investor in the business.
8. Should you wish to sell your shares in the future you will need to contact the CEO of the relevant company who will advise you on the best way to maximise your return (in line with the Articles of Association and Shareholders Agreement).