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Advisor Equity Agreement Generator for England and Wales

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Key Requirements PROMPT example:

Advisor Equity Agreement

"I need an Advisor Equity Agreement for our UK-based fintech startup to bring on a senior banking executive as an advisor, offering 2% equity vesting over 24 months, with advisory services focused on regulatory compliance and market expansion strategy."

Document background
The Advisor Equity Agreement is essential for companies seeking to formalize relationships with strategic advisors while conserving cash resources. This document, governed by English and Welsh law, outlines the exchange of advisory services for equity compensation, typically used by startups and growing companies. The agreement includes critical elements such as service scope, equity terms, vesting schedules, and confidentiality provisions. It ensures compliance with UK corporate and securities laws while protecting both parties' interests and establishing clear expectations for the advisory relationship.
Suggested Sections

1. Parties: Identification of the company and advisor

2. Background: Context of the advisory relationship and purpose of agreement

3. Definitions: Key terms used throughout the agreement

4. Appointment: Terms of advisor appointment and role description

5. Equity Compensation: Details of equity grant, vesting schedule, and conditions

6. Services: Scope of advisory services to be provided

7. Term and Termination: Duration and termination provisions

8. Confidentiality: Protection of company information

9. Governing Law: Specification of applicable law and jurisdiction

Optional Sections

1. Non-Compete: Restrictions on competitive activities - use when advisor has access to sensitive information or competitors

2. IP Assignment: Transfer of intellectual property rights - use when advisor may create IP during service

3. Expenses: Terms for reimbursement of expenses - use when advisor may incur expenses in role

4. Insurance: Requirements for professional insurance - use when advisor provides professional services

Suggested Schedules

1. Schedule 1: Services Description: Detailed outline of advisory services

2. Schedule 2: Equity Terms: Detailed terms of equity grant and vesting

3. Schedule 3: Share Rights: Rights attached to shares being granted

4. Appendix A: Vesting Schedule: Detailed vesting timeline and conditions

5. Appendix B: Company Policies: Relevant company policies applicable to advisor

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
Relevant Teams
Relevant Roles
Industries

Companies Act 2006: Primary legislation governing company operations, including share issuance, transfer provisions, directors' duties, company documentation requirements, and share capital structure regulations

Financial Services and Markets Act 2000: Regulatory framework for financial services, covering regulated activities, financial promotion rules, and investment advice regulations

Employment Rights Act 1996: Legislation defining employment rights and status - crucial for distinguishing advisor status from employment and defining rights and obligations

Income Tax Act 2007 and Corporation Tax Act 2009: Tax legislation governing equity compensation, EMI considerations, and capital gains tax implications for equity arrangements

Data Protection Act 2018 and UK GDPR: Legal framework for data protection and privacy, covering handling of personal information and data privacy requirements

Contract Law principles: Common law principles governing contract formation, consideration requirements, and clarity of terms and conditions

FCA Regulations: Financial Conduct Authority regulations governing regulated activities and compliance requirements in financial services

Competition Law: Legal framework governing non-compete provisions and restrictive covenants in business relationships

Intellectual Property Laws: Including Copyright, Designs and Patents Act 1988 and Trade Marks Act 1994, protecting IP created during advisory relationship

Small Business, Enterprise and Employment Act 2015: Legislation covering transparency requirements and registration obligations for small businesses and enterprise arrangements

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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