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Equity In Exchange For Services Agreement
"I need an Equity in Exchange for Services Agreement for my Mumbai-based technology startup to engage a senior software architect who will develop our core platform in exchange for 3% equity, with the service period starting March 2025."
1. Parties: Identification of the company and the service provider with complete details
2. Background: Context of the agreement, including company's need for services and intention to issue equity
3. Definitions: Key terms used throughout the agreement
4. Services: Detailed description of services to be provided, including scope, timeline, and deliverables
5. Equity Compensation: Details of equity to be issued, including number of shares, class, and valuation
6. Service Provider's Obligations: Specific responsibilities, performance standards, and commitments
7. Company's Obligations: Company's commitments regarding equity issuance and support for services
8. Representations and Warranties: Statements of fact and assurances from both parties
9. Compliance and Regulatory Requirements: Obligations regarding corporate, securities, and tax laws
10. Term and Termination: Duration of agreement and circumstances for termination
11. Confidentiality: Protection of sensitive information exchanged during the engagement
12. Dispute Resolution: Process for handling disagreements and jurisdiction details
13. General Provisions: Standard clauses including notices, amendments, and governing law
1. Foreign Investment Compliance: Required when service provider is a foreign entity, addressing FEMA compliance
2. Intellectual Property Rights: Needed when services involve creation of IP or use of existing IP
3. Non-Competition: Relevant when protecting company's business interests is crucial
4. Lock-in Period: Optional restrictions on transfer of issued shares
5. Tag-Along Rights: Rights for minority shareholders in case of stake sale
6. Board Seat/Observer Rights: When service provider is to be given board representation
7. Performance Milestones: When equity issuance is tied to specific performance targets
8. Exit Rights: Mechanisms for service provider to sell shares in future
1. Schedule A - Service Description: Detailed scope of services, deliverables, and timelines
2. Schedule B - Equity Terms: Details of share class, rights, and valuation methodology
3. Schedule C - Performance Metrics: Specific KPIs and evaluation criteria for services
4. Schedule D - Compliance Checklist: Required corporate and regulatory approvals
5. Schedule E - Share Transfer Restrictions: Detailed terms of lock-in and transfer limitations
6. Appendix 1 - Board Resolution: Copy of board resolution approving equity issuance
7. Appendix 2 - Valuation Report: Independent valuation report for share pricing
8. Appendix 3 - Service Provider's Credentials: Documentation of service provider's qualifications and experience
Authors
Affiliate
Applicable Law
Board
Business Day
Company
Confidential Information
Deliverables
Effective Date
Equity Shares
Fair Market Value
Force Majeure
Intellectual Property Rights
Lock-in Period
Material Adverse Effect
Memorandum of Association
Articles of Association
Performance Metrics
Professional Services
Project
Related Party
Registered Valuer
SEBI
Service Provider
Services
Share Certificate
Shareholders
Share Transfer
Termination Date
Term
Valuation Report
Vesting Period
Vesting Schedule
Working Hours
Work Product
RBI
ROC
Substantial Interest
Board Resolution
Completion Date
Consideration
Control
Corporate Action
Dispute
Encumbrance
Fully Diluted Basis
Governmental Authority
Independent Director
Indemnified Party
Losses
Material Breach
Nominee
Person
Quarter
Representatives
Special Rights
Tax
Transfer
Scope of Services
Service Standards
Equity Issuance
Share Rights
Consideration
Performance Requirements
Obligations of Service Provider
Company Obligations
Representations and Warranties
Regulatory Compliance
Share Transfer Restrictions
Lock-in Period
Tag-Along Rights
Drag-Along Rights
Board Representation
Confidentiality
Non-Competition
Non-Solicitation
Intellectual Property Rights
Indemnification
Force Majeure
Term and Termination
Consequences of Termination
Assignment
Notices
Governing Law
Dispute Resolution
Amendment
Waiver
Severability
Entire Agreement
Further Assurance
Costs
Counterparts
Time of Essence
Independent Contractor
Tax Compliance
Foreign Exchange Compliance
Corporate Approvals
Shareholder Rights
Exit Rights
Valuation
Performance Monitoring
Reporting Requirements
Audit Rights
Insurance
Data Protection
Anti-Corruption
Change of Control
Technology
Professional Services
Consulting
Start-ups
E-commerce
Healthcare
Financial Services
Education Technology
Manufacturing
Real Estate
Media and Entertainment
Retail
Information Technology
Business Services
Legal
Finance
Corporate Development
Human Resources
Executive Leadership
Corporate Secretarial
Business Development
Strategy
Operations
Compliance
Chief Executive Officer
Chief Financial Officer
Legal Counsel
Company Secretary
Chief Operating Officer
Business Development Director
Strategy Consultant
Technology Consultant
Professional Service Provider
Management Consultant
Human Resources Director
Finance Director
Corporate Development Manager
Investment Manager
Startup Founder
Entrepreneur
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