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Advisor Equity Agreement Template for Malaysia

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Key Requirements PROMPT example:

Advisor Equity Agreement

"I need an Advisor Equity Agreement for a Malaysian tech startup, granting our new technical advisor 2% equity vesting over 2 years, with monthly vesting after a 6-month cliff, starting January 1, 2025."

Document background
The Advisor Equity Agreement is a crucial document for companies in Malaysia seeking to formalize relationships with strategic advisors through equity-based compensation. This agreement is particularly relevant for startups and growing companies that want to attract experienced advisors while preserving cash resources. The document complies with Malaysian corporate law, particularly the Companies Act 2016 and Capital Markets and Services Act 2007, and includes essential provisions for equity grants, vesting schedules, service expectations, and protective clauses. It's designed to protect both the company's interests through confidentiality and IP provisions while providing advisors with clear terms regarding their equity compensation. The agreement typically requires approval from the board of directors and may need shareholder approval depending on the company's articles of association.
Suggested Sections

1. Parties: Identification of the Company and the Advisor with full legal names and details

2. Background: Context of the agreement and advisor appointment

3. Definitions: Key terms used throughout the agreement

4. Appointment and Role: Scope of advisory services and relationship terms

5. Equity Compensation: Details of equity grant, including number of shares or options

6. Vesting Schedule: Timing and conditions for equity vesting

7. Services and Commitments: Specific duties, time commitment, and performance expectations

8. Confidentiality: Protection of company's confidential information

9. Intellectual Property: Ownership and assignment of IP created during advisory period

10. Term and Termination: Duration of agreement and termination provisions

11. Representations and Warranties: Standard legal assurances from both parties

12. General Provisions: Standard boilerplate clauses including governing law, notices, etc.

Optional Sections

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

2. Tax Matters: Specific tax handling and responsibilities - include if complex tax implications exist

3. Board Observer Rights: Rights to attend board meetings - include if advisor is granted board observation privileges

4. Expense Reimbursement: Terms for reimbursing advisor expenses - include if advisor will incur reimbursable expenses

5. Insurance: Requirements for professional liability insurance - include if advisor provides specialized professional services

6. Regulatory Compliance: Specific regulatory obligations - include if advisor's role involves regulated activities

Suggested Schedules

1. Schedule 1 - Equity Terms: Detailed terms of equity grant including class of shares, rights, and restrictions

2. Schedule 2 - Vesting Schedule: Detailed vesting timeline and milestone conditions

3. Schedule 3 - Services Description: Detailed scope of advisory services and deliverables

4. Schedule 4 - Share Transfer Form: Template form for executing share transfers

5. Appendix A - Company Articles Extract: Relevant excerpts from company's articles relating to share issuance

6. Appendix B - Confidentiality Terms: Detailed confidentiality obligations and procedures

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





























Clauses




























Relevant Industries

Technology Startups

Financial Services

Professional Services

Healthcare

E-commerce

Manufacturing

Education Technology

Biotechnology

Real Estate

Renewable Energy

Digital Media

Telecommunications

Relevant Teams

Legal

Corporate Secretarial

Finance

Executive Leadership

Human Resources

Compliance

Board of Directors

Corporate Development

Strategic Planning

Relevant Roles

CEO

Founder

Managing Director

Legal Counsel

Company Secretary

Chief Financial Officer

Corporate Advisor

Business Development Director

Strategy Consultant

Industry Expert

Technical Advisor

Board Member

Venture Partner

Chief Technology Officer

Operations Director

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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