Equity For Services Agreement Template for Ireland

The Equity For Services Agreement is a strategic legal instrument used when a company, typically operating under Irish law, wishes to compensate a service provider with equity instead of, or in addition to, cash payment. This arrangement is particularly common in startup environments or growth-phase companies where cash conservation is crucial. The document comprehensively covers service specifications, equity terms, vesting schedules, and associated rights and obligations, ensuring compliance with Irish company law and EU regulations. It's essential for businesses looking to align service providers' interests with company growth while managing cash flow, and includes necessary provisions for share issuance, transfer restrictions, and tax considerations. The agreement is structured to protect both parties' interests while facilitating a clear understanding of the equity-for-services arrangement.

1. Parties: Identification of the company and the service provider, including full legal names and addresses

2. Background: Context of the agreement, including the company's desire to engage the service provider and the provider's willingness to provide services in exchange for equity

3. Definitions: Key terms used throughout the agreement, including 'Services', 'Shares', 'Vesting Period', and other relevant definitions

4. Services: Detailed description of the services to be provided, including scope, deliverables, and performance standards

5. Equity Compensation: Details of the equity offering, including number of shares, class of shares, and percentage of company ownership

6. Vesting Terms: Schedule and conditions for share vesting, including any cliff period and vesting milestones

7. Service Provider's Obligations: Key responsibilities, commitments, and quality standards expected from the service provider

8. Company's Obligations: Company's commitments, including support, resources, and information to be provided

9. Share Rights and Restrictions: Details of voting rights, dividend rights, and any transfer restrictions on the shares

10. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

11. Confidentiality: Obligations regarding confidential information and trade secrets

12. Intellectual Property: Ownership and rights to IP created during the service provision

13. Tax Matters: Tax implications and responsibilities related to the equity compensation

14. General Provisions: Standard legal clauses including governing law, entire agreement, and amendments