Warrants are a common tool in incentive programs that companies use to attract and retain key employees. A warrant gives the employee a subscription right to shares in the company. This gives the employee the right to purchase the shares at a predetermined price at a later point in time.

This can be particularly attractive if the value of the company increases. Warrants can therefore be an effective way for companies to motivate employees to work towards the growth and success of the company.

Warrants are often used as a partial replacement for salary and are particularly useful in growth companies as they can provide the recipient with a significant financial gain in the event of a later sale of the company.

Implementing a warrant program requires careful planning and understanding of the legal and tax implications. At Samar Law, we advise on and handle all aspects of warrant programs, from design and implementation to maintenance and compliance.

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Samar Law can assist with the following tasks, among others:

• Warrant program design: We assist in designing and implementing warrant programs that secure the company's long-term goals. We tailor the program to the specific needs of the company to best motivate employees.
• Drafting and entering into grant agreements: We assist with the ongoing drafting of grant agreements so that the company can enter into these agreements with new and existing employees. Together with the warrant program itself, the grant agreements define the terms and conditions that apply to the grant of warrants.
• 7P calculations: We perform calculations in relation to section 7P of the Danish Tax Assessment Act to organize the warrant program in the most beneficial manner possible.
• Company law documents and registrations: We prepare and register the necessary documents for the adoption of the warrant program at the general meeting. In addition, we handle the preparation and registering of documents required for the ongoing grant and exercise of warrants.
• Meetings with employees: We offer to hold meetings with employees regarding their grant of warrants so they can get answers to any questions they may have.

If you have any questions or are looking for advice, you are welcome to contact lawyer Payam Samarghandi by email at payam@samarlaw.dk or by phone on +45 60 79 37 77.

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