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Consulting For Equity Agreement Template for India

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Key Requirements PROMPT example:

Consulting For Equity Agreement

"I need a Consulting For Equity Agreement for engaging a senior technology consultant who will help develop our AI platform, offering them 2% equity vesting over 24 months, with a one-year cliff and standard IP assignment provisions."

Document background
The Consulting For Equity Agreement is primarily used by companies in India seeking to engage professional consultants while preserving cash resources by offering equity compensation. This arrangement is particularly common among startups and growth-stage companies. The document must comply with Indian corporate law requirements, particularly the Companies Act, 2013, and SEBI regulations regarding share issuance. It typically includes detailed provisions about the consulting services, equity compensation structure, vesting schedules, and protection of intellectual property rights. This agreement type is especially relevant when companies want to align consultants' interests with long-term business success by making them stakeholders in the company's growth.
Suggested Sections

1. Parties: Identification of the company and the consultant, including their legal status and registered addresses

2. Background: Context of the agreement, including the company's business and the consultant's expertise

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

4. Scope of Services: Detailed description of consulting services to be provided

5. Term and Engagement: Duration of the consulting relationship and commitment levels

6. Equity Compensation: Details of equity grant, including number of shares, vesting schedule, and type of securities

7. Vesting and Milestones: Specific conditions and timeline for equity vesting, including any performance-based criteria

8. Representations and Warranties: Statements of fact and assurances from both parties

9. Intellectual Property Rights: Ownership and transfer of IP created during the consulting engagement

10. Confidentiality: Protection of confidential information and trade secrets

11. Non-Competition and Non-Solicitation: Restrictions on competitive activities and hiring

12. Termination: Conditions and processes for ending the agreement

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

Optional Sections

1. Foreign Exchange Compliance: Required when consultant is non-resident or foreign national

2. Tax Implications: Detailed tax clauses when complex tax structures are involved

3. Board Observer Rights: Optional rights for consultant to attend board meetings

4. Exit Rights: Special provisions for equity liquidation in case of company sale or IPO

5. Dispute Resolution: Specific arbitration or mediation procedures if desired beyond standard court jurisdiction

6. Insurance Requirements: Professional liability insurance requirements if consulting involves high-risk activities

7. Force Majeure: Provisions for unforeseen circumstances affecting service delivery

Suggested Schedules

1. Schedule A - Services Description: Detailed scope of work, deliverables, and timelines

2. Schedule B - Equity Terms: Detailed terms of equity issuance, including class of shares and rights attached

3. Schedule C - Vesting Schedule: Detailed vesting timeline and milestone requirements

4. Schedule D - Company IP: List of company's pre-existing intellectual property

5. Schedule E - Consultant's Pre-existing IP: List of consultant's pre-existing intellectual property

6. Appendix 1 - Share Transfer Form: Standard form for executing share transfers

7. Appendix 2 - Confidentiality Agreement: Detailed NDA terms if separate from main agreement

8. Appendix 3 - Relevant Board Resolutions: Copies of board resolutions approving the consulting arrangement and equity issuance

Authors

Alex Denne

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

Relevant legal definitions







































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Relevant Industries

Technology

Software Development

Financial Services

E-commerce

Healthcare Technology

Business Services

Media and Entertainment

Education Technology

Biotechnology

Clean Technology

Manufacturing

Professional Services

Relevant Teams

Legal

Human Resources

Finance

Corporate Development

Executive Leadership

Operations

Company Secretarial

Compliance

Business Development

Strategy

Relevant Roles

CEO

Founder

Chief Technology Officer

Chief Financial Officer

Strategy Consultant

Technical Consultant

Management Consultant

Business Development Consultant

Marketing Consultant

Product Development Consultant

Financial Advisor

Technology Architect

Industry Expert

Operations Consultant

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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