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Advisor Equity Agreement Template for Denmark

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Advisor Equity Agreement

Document background
The Advisor Equity Agreement is a crucial document for companies operating under Danish law who wish to engage experienced professionals as advisors while conserving cash resources by offering equity compensation. This document type is particularly valuable for startups and growth companies seeking to attract high-caliber advisors who can provide strategic guidance, industry expertise, or technical knowledge. The agreement comprehensively addresses the advisory relationship, equity compensation structure, vesting conditions, and related obligations while ensuring compliance with Danish corporate, securities, and tax laws. It's designed to protect both the company's interests in maintaining confidentiality and intellectual property rights while providing advisors with clear terms regarding their equity compensation and responsibilities.
Suggested Sections

1. Parties: Identification of the Company and the Advisor, including full legal names, registration numbers, and addresses

2. Background: Context of the agreement, including the company's desire to engage the advisor and the advisor's qualifications

3. Definitions: Key terms used throughout the agreement, including specific Danish legal terminology where relevant

4. Appointment and Services: Scope of advisory services, responsibilities, and commitment levels

5. Term and Termination: Duration of the advisory relationship and conditions for termination

6. Equity Compensation: Details of equity grant, including type of securities, amount, and valuation

7. Vesting Schedule: Timing and conditions for equity vesting, including any cliff period

8. Tax Implications: Tax treatment and responsibilities in accordance with Danish tax law

9. Confidentiality: Protection of company information and trade secrets

10. Intellectual Property Rights: Ownership and assignment of IP created during the advisory relationship

11. Representations and Warranties: Standard confirmations from both parties regarding capacity and authority

12. Governing Law and Jurisdiction: Confirmation of Danish law application and jurisdiction for disputes

Optional Sections

1. Non-Competition: Restrictions on competing activities, only included if appropriate for the advisor's role and compliant with Danish law restrictions on such clauses

2. Non-Solicitation: Restrictions on soliciting employees or customers, included when advisor has significant customer or employee contact

3. Board Observer Rights: Rights to attend board meetings, included for senior advisors where applicable

4. Expense Reimbursement: Terms for reimbursing advisor expenses, included if advisor will incur expenses

5. Additional Services: Framework for engaging advisor in additional services beyond standard scope, included for flexible arrangements

6. Data Protection: GDPR compliance terms, included when personal data processing is extensive

7. Assignment Rights: Rights to assign equity to permitted entities like holding companies, included when advisor requests such flexibility

Suggested Schedules

1. Schedule A - Services Description: Detailed outline of advisory services and specific responsibilities

2. Schedule B - Equity Terms: Detailed terms of equity grant including exact number of shares/options, price, and specific vesting conditions

3. Schedule C - Vesting Schedule: Detailed timetable and calculations for equity vesting

4. Schedule D - Company Shareholders' Agreement: Key terms from the shareholders' agreement that will apply to the advisor

5. Schedule E - Share Transfer Form: Template form for executing share transfers upon vesting

6. Schedule F - Tax Calculations: Examples of tax calculations and implications under Danish law

7. Schedule G - Confidential Information: Specific categories of confidential information relevant to the advisory role

Authors

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Relevant Industries
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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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