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Startup Advisor Equity Agreement Template for India

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Key Requirements PROMPT example:

Startup Advisor Equity Agreement

"I need a Startup Advisor Equity Agreement for our AI technology startup, where we're bringing on a technical advisor who will receive 2% equity vesting over 24 months, with specific provisions for protecting our intellectual property and AI algorithms."

Document background
The Startup Advisor Equity Agreement is a crucial document for Indian startups seeking to formalize relationships with experienced advisors through equity-based compensation. This document is typically used when a startup wants to engage industry experts, seasoned entrepreneurs, or subject matter specialists as advisors while conserving cash resources by offering equity as compensation. The agreement ensures compliance with Indian corporate laws, including the Companies Act 2013 and SEBI regulations, while addressing key aspects such as equity vesting, service expectations, and intellectual property protection. It's particularly relevant for early-stage companies looking to leverage external expertise for growth while aligning advisor interests with company success through equity ownership.
Suggested Sections

1. Parties: Identification of the Company and the Advisor with complete details

2. Background: Context of the agreement, including company status and reason for engaging advisor

3. Definitions: Key terms used throughout the agreement

4. Appointment and Term: Formal appointment of advisor and duration of engagement

5. Advisory Services: Detailed scope of advisory services to be provided

6. Equity Compensation: Details of equity grant, vesting schedule, and related terms

7. Confidentiality: Obligations regarding confidential information and trade secrets

8. Intellectual Property Rights: Assignment and protection of IP created during advisory period

9. Representations and Warranties: Statements of fact and promises by both parties

10. Termination: Conditions and process for ending the advisory relationship

11. Post-Termination Obligations: Continuing obligations after agreement ends

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

Optional Sections

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

2. Non-Solicitation: Restrictions on soliciting company employees or customers - relevant for advisors with significant contact with team/clients

3. Foreign Exchange Compliance: Required if advisor is non-resident Indian or foreign national

4. Tax Matters: Detailed tax implications and responsibilities - important for complex equity structures

5. Board Observer Rights: If advisor is granted rights to attend board meetings

6. Dispute Resolution: Detailed arbitration or mediation procedures - recommended for high-value agreements

7. Force Majeure: Provisions for unforeseen circumstances affecting performance

Suggested Schedules

1. Schedule A - Services Description: Detailed outline of advisory services and expectations

2. Schedule B - Equity Terms: Detailed terms of equity grant, including vesting schedule and conditions

3. Schedule C - Confidential Information: Specific items considered confidential information

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

5. Appendix 2 - Deed of Adherence: For advisor to comply with shareholders agreement if applicable

6. Appendix 3 - Acceptance of Appointment: Formal acceptance of advisory role and terms

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 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

E-commerce

FinTech

HealthTech

EdTech

Software as a Service

Clean Technology

Biotechnology

Digital Media

Consumer Internet

Deep Technology

Artificial Intelligence

Manufacturing Startups

Retail Technology

Relevant Teams

Legal

Finance

Corporate Affairs

Human Resources

Executive Leadership

Board of Directors

Company Secretarial

Compliance

Relevant Roles

Founder

CEO

Company Secretary

Legal Counsel

General Counsel

Chief Financial Officer

Board Member

Startup Advisor

Industry Expert

Technical Advisor

Strategic Advisor

Business Advisor

Investment Advisor

Mentor

Chief Technology Officer

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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