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Stock Warrant Agreement Template for Denmark

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Key Requirements PROMPT example:

Stock Warrant Agreement

I need a Stock Warrant Agreement under Danish law for issuing warrants to our senior management team, with a four-year vesting period starting March 2025 and good/bad leaver provisions.

What is a Stock Warrant Agreement?

The Stock Warrant Agreement serves as a crucial instrument in Danish corporate practice for companies seeking to align interests with key stakeholders or raise capital. Commonly used in employee incentivization, strategic partnerships, or investment arrangements, this document details the terms under which warrant holders can acquire company shares. The agreement must comply with Danish law, particularly the Danish Companies Act (Selskabsloven) sections 155-158, which govern warrant issuance and exercise. It typically includes specific provisions regarding exercise price, periods, vesting conditions, adjustments for corporate events, and transfer restrictions. The Stock Warrant Agreement is particularly valuable for growth companies and established corporations looking to attract and retain talent or secure investment while managing their capital structure effectively.

What sections should be included in a Stock Warrant Agreement?

1. Parties: Identification of the issuing company and the warrant holder(s)

2. Background: Context of the warrant issuance, including corporate approvals and purpose

3. Definitions: Key terms used throughout the agreement, including technical and financial definitions

4. Grant of Warrants: Specific details of the warrants being issued, including number, class, and exercise price

5. Exercise Period: Timeframe during which the warrants may be exercised

6. Exercise Procedure: Detailed process for exercising warrants, including notice requirements and payment procedures

7. Adjustment Provisions: Mechanisms for adjusting warrant terms in response to corporate events (splits, mergers, etc.)

8. Rights as Warrant Holder: Description of rights before exercise, including any voting or dividend rights

9. Transfer Restrictions: Limitations on the ability to transfer or assign the warrants

10. Termination: Circumstances under which the warrants may expire or be terminated

11. Taxes: Tax obligations and responsibilities related to the warrant issuance and exercise

12. Notices: Communication requirements and procedures between parties

13. Governing Law and Jurisdiction: Specification of Danish law governance and jurisdiction for disputes

14. Signature Page: Execution blocks for all parties

What sections are optional to include in a Stock Warrant Agreement?

1. Vesting Schedule: Used when warrants vest over time, typically in employee/management warrant programs

2. Good/Bad Leaver Provisions: Included when warrants are part of employment/management incentive schemes

3. Tag-Along Rights: Included when warrant holders should have the right to participate in future share sales

4. Drag-Along Obligations: Used when warrant holders can be forced to sell alongside majority shareholders

5. Anti-dilution Protection: Included when warrant holders should be protected against dilution from new share issuances

6. Shareholders' Agreement Adherence: Required when warrant holders must accede to an existing shareholders' agreement upon exercise

7. Competition and Confidentiality: Included when warrants are part of employment arrangements

8. Registration Rights: Used for companies planning public offering or listing

What schedules should be included in a Stock Warrant Agreement?

1. Warrant Terms: Detailed technical specifications of the warrants, including precise calculation methods

2. Exercise Notice Template: Standard form for exercising warrants

3. Corporate Resolutions: Copies of board and shareholder resolutions authorizing warrant issuance

4. Vesting Schedule Details: If applicable, detailed breakdown of vesting periods and conditions

5. Articles of Association: Current articles of association showing authorized share capital and warrant provisions

6. Shareholders' Agreement: If applicable, the shareholders' agreement to which warrant holders must adhere

7. Calculation Examples: Examples of adjustment calculations for corporate events and anti-dilution provisions

Authors

Alex Denne

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

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Relevant Teams

Legal

Finance

Human Resources

Corporate Secretariat

Executive Management

Treasury

Compliance

Corporate Development

Compensation and Benefits

Investor Relations

Relevant Roles

Chief Executive Officer

Chief Financial Officer

General Counsel

Corporate Lawyer

Investment Manager

HR Director

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Board Member

Company Secretary

Chief Legal Officer

Equity Compensation Manager

Finance Director

Corporate Development Manager

Treasury Manager

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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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