Studio Shared Earnings Agreement
This is a working draft of an agreement where Artcompiler Studio develops SaaS products for partner companies in exchange for a discounted fee and shared earnings.
Feel free to comment in the Google doc, or here.
Studio will vest a [20]% equity interest in the Company upon completion of the [third] cycle [or completion of minimum viable product].
I think I understand this but let I’m unsure. After the 3 cycle (~12 weeks), ArtCompiler receives $100k in equity. At the same time ArtCompiler starts accruing equity interest at 20%? for after 1 yr this would be $120k? what happens on company equity value changes (up or down)?
Board Observer
and
Confidentiality
These sections are things I had not considered before but make a lot of sense. Were these derived from a legal guide or experience?
Studio will vest a [20]% equity interest in the Company upon completion of the [third] cycle [or completion of minimum viable product].
I think I understand this but let I’m unsure. After the 3 cycle (~12 weeks), ArtCompiler receives $100k in equity. At the same time ArtCompiler starts accruing equity interest at 20%? for after 1 yr this would be $120k? what happens on company equity value changes (up or down)?
The theory is that as partners, once we have something to show for our work, we co-own it in these relative proportions. The assumption is that we are going from zero to something. If a company had customers / audience and just wanted help developing a better product, these parameter could be tweaked.
Board Observer
and
Confidentiality
These sections are things I had not considered before but make a lot of sense. Were these derived from a legal guide or experience?
This agreement is based on an agreement called the Shared Earnings Agreement (SEAL). We repurposed it so that the investor could be a dev shop that gets something for their effort rather than just $$.