IANAL so beware what I say. Question: how legal savvy are you? You can write or find generic no-frills stuff yourself that can do in a pinch for small shares.

IANAL so beware what I say. Question: how legal savvy are you? You can write or find generic no-frills stuff yourself that can do in a pinch for small shares. Your "brief statement of understanding" is helpful - you can simply formalize that more. I don't think you should/need to put a "monetary value on hours spent" - you're giving shares of equity and both parties agree to the deal. What else is there to say? Words of advice: * Vest whenever possible * Give them as little as you can now so that you can attract them later to come on full-time (if that's what you want) Good luck!