Sweat Equity Contribution Clause Samples

Sweat Equity Contribution. No more than 25% of the total 20% equity participation requirement (“equal to 5%”) set forth in Section 5.1 of this Section may be met by a CBE providing development services in lieu of a cash equity investment that will be compensated by the Developer in the future at a date certain (“sweat equity contribution”). The Developer and the CBE shall sign, and provide to the DSLBD, a service agreement describing the following: (i) A detailed description of the scope of work that the CBE will perform; (ii) The dollar amount that the CBE will be compensated for its services and the amount the CBE is forgoing as an investment in the Project; (iii) The date or time period when the CBE will receive compensation; (iv) The return, if any, the CBE will receive on its sweat equity contribution; and (v) An explanation of when the CBE will receive its return as compared to other team members or investors.