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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."
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
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
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
Technology
Financial Services
Healthcare
E-commerce
Biotechnology
Clean Energy
Software Development
Digital Media
Manufacturing
Professional Services
Consumer Products
Education Technology
Agricultural Technology
Telecommunications
Legal
Corporate Affairs
Executive Leadership
Board of Directors
Corporate Governance
Finance
Human Resources
Operations
Company Secretariat
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
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