As an advisor and active chairman, I strive for long-term cooperation with my clients. To ensure that the goals of the company and my personal goals are aligned, I like to be remunerated for my work with virtual shares or options. To this end I like to agree on the following or similar terms and conditions:
We agree on an hourly rate
I document the hours I have worked and usually invoice them on a monthly basis, or sometimes even on a quarterly basis if the workload has been low these particular months.
A fixed percentage to be agreed upon (at least one third) of the invoice amount ("down payment") is to be transferred within fourteen days (net14). Background is the sales tax, trade tax and corporate income tax to be paid by me.
For other expenses (travel expenses, meeting rooms, hospitality, licenses etc.) in connection with the assignment I will issue a separate invoice, which has to be paid in full within one month. See my travel policy.
I post the outstanding amounts in my Accounts Receivable and at year end these receivables are settled by virtual shares or options by means of a settlement agreement.
The strike price of the options will be 0€ and the number of shares is calculated according to the current value of the ordinary shares (i.e. minus any liquidation preferences or other deductions).