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Startup Advisor Equity Agreement Template for Australia

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Key Requirements PROMPT example:

Startup Advisor Equity Agreement

"I need a Startup Advisor Equity Agreement for our fintech startup to bring on a technical advisor who will receive 2% equity vesting over 2 years with a 6-month cliff, starting March 2025, with specific provisions for intellectual property protection in the AI/ML space."

Document background
The Startup Advisor Equity Agreement is essential for Australian startups seeking to formalize relationships with experienced advisors while offering equity as compensation. This document is typically used when a company wants to engage industry experts, entrepreneurs, or professionals who can provide valuable guidance and expertise in exchange for equity ownership rather than cash compensation. It addresses key aspects required under Australian law, including corporations law compliance, securities regulations, and tax considerations. The agreement covers crucial elements such as the scope of advisory services, equity vesting schedules, confidentiality obligations, and intellectual property rights. This type of agreement is particularly important for early-stage companies looking to build strong advisory relationships while managing their cash resources effectively and ensuring all equity arrangements are properly documented and legally compliant.
Suggested Sections

1. Parties: Identification of the company and the advisor, including their full legal names, addresses, and ACN/ABN where applicable

2. Background: Context of the advisor engagement, company status, and purpose of the agreement

3. Definitions: Key terms used throughout the agreement, including technical, financial, and legal terminology

4. Appointment and Term: Formal appointment of the advisor, term of engagement, and renewal/termination provisions

5. Advisor Services: Detailed description of advisory services to be provided, including scope, expectations, and time commitment

6. Equity Compensation: Structure of equity compensation, including type of securities, quantity, and vesting schedule

7. Vesting Terms: Detailed vesting conditions, including time-based or milestone-based vesting, cliff periods, and acceleration events

8. Confidentiality: Confidentiality obligations and handling of company proprietary information

9. Intellectual Property: Assignment and protection of intellectual property created during the advisory relationship

10. Relationship of Parties: Clarification that the advisor is an independent contractor, not an employee

11. Representations and Warranties: Standard representations from both parties regarding authority, conflicts, and compliance

12. Termination: Grounds for termination, notice requirements, and consequences of termination

13. General Provisions: Standard legal provisions including governing law, notices, amendments, and assignment

Optional Sections

1. Non-Competition: Restrictions on advisor's involvement with competing businesses, used when advisor has access to sensitive competitive information

2. Board Observer Rights: Rights to attend board meetings, used for senior advisors with strategic involvement

3. Multiple Advisor Provisions: Coordination and hierarchy provisions when multiple advisors are engaged

4. Performance Metrics: Specific performance criteria for equity vesting, used when vesting is tied to measurable outcomes

5. Dispute Resolution: Detailed dispute resolution procedures, used for high-value or complex arrangements

6. Tag-Along Rights: Rights to participate in future sale transactions, used for significant equity positions

7. Tax Provisions: Specific tax treatment and obligations, used when complex tax implications exist

Suggested Schedules

1. Schedule 1 - Services Description: Detailed outline of specific advisory services, deliverables, and time commitment

2. Schedule 2 - Equity Terms: Detailed terms of equity compensation including number of shares/options, price, and vesting schedule

3. Schedule 3 - Vesting Schedule: Detailed vesting timeline, milestones, and acceleration conditions

4. Schedule 4 - Confidential Information: Specific categories of confidential information and handling requirements

5. Schedule 5 - Deed of Accession: Form of deed for advisor to accede to shareholders agreement if required

6. Appendix A - Company Policies: Relevant company policies applicable to advisors

7. Appendix B - Share Certificate Template: Template for share certificates or option certificates to be issued

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓƵ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Relevant Industries

Technology

Financial Services

Healthcare

E-commerce

Biotechnology

Clean Energy

Software Development

Digital Media

Manufacturing

Professional Services

Consumer Products

Education Technology

Agricultural Technology

Telecommunications

Relevant Teams

Legal

Corporate Affairs

Executive Leadership

Board of Directors

Corporate Governance

Finance

Human Resources

Operations

Company Secretariat

Relevant Roles

Founder

CEO

Company Director

Industry Expert

Serial Entrepreneur

Business Advisor

Technical Advisor

Strategic Advisor

Investment Advisor

Marketing Advisor

Product Advisor

Technology Advisor

Growth Advisor

Operations Advisor

Financial Advisor

Legal Counsel

Company Secretary

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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