Startup Advisor Equity Agreement Generator for England and Wales

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Key Requirements PROMPT example:

Startup Advisor Equity Agreement

"I need a Startup Advisor Equity Agreement for our UK-based fintech startup, offering 1% equity vesting over 2 years to a technical advisor who will commit 10 hours per month starting March 2025, with standard confidentiality and IP provisions."

Document background
The Startup Advisor Equity Agreement is essential when companies seek to engage experienced advisors by offering equity instead of cash compensation. This document, governed by English and Welsh law, establishes the framework for the advisory relationship, including specific details about equity grants, vesting schedules, and service expectations. It protects both parties' interests while ensuring compliance with UK corporate and securities regulations. The agreement is particularly valuable for early-stage startups looking to leverage expertise while preserving cash resources.
Suggested Sections

1. Parties: Identification and details 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 and Term: Scope of advisory role and duration

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

6. Duties and Obligations: Advisor's responsibilities and commitments

7. Confidentiality: Protection of company information

8. Termination: Conditions for ending the agreement

Optional Sections

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

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

3. Expenses: Terms for reimbursement of expenses - use when advisor may incur expenses during service

4. Board Observer Rights: Rights to attend board meetings - use for strategic advisors with significant involvement

Suggested Schedules

1. Schedule 1: Services: Detailed description of advisory services

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

3. Schedule 3: Company Information: Key company details and cap table

4. Appendix A: Confidential Information: Definition and scope of confidential information

Authors

Alex Denne

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

Relevant legal definitions
Industries

Companies Act 2006: Primary legislation governing company operations including share capital, allotment rules, directors' duties, company constitution, articles of association, and shareholder rights and protections

Financial Services and Markets Act 2000: Regulates financial services activities and investments, particularly relevant if advisory services involve regulated activities or investment-related matters

Employment Rights Act 1996: Ensures clear distinction between advisor status and employee status, defining rights and obligations related to independent contractors

Income Tax Act 2007 and Corporation Tax Act 2010: Covers tax implications of equity compensation and potential Enterprise Management Incentive (EMI) scheme considerations

Data Protection Act 2018 and UK GDPR: Governs the handling of confidential information and data protection obligations in the advisory relationship

Copyright, Designs and Patents Act 1988 and Trade Marks Act 1994: Intellectual property legislation protecting IP rights and creations during the advisory relationship

Competition Act 1998: Regulates non-compete provisions and restraint of trade considerations in advisory agreements

Common Law Contract Principles: Fundamental contract law principles governing contract formation, consideration requirements, and terms and conditions

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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