Advisory Board Agreement Template

For American startups, the Founder Institute offers advice on numbers, as well as a free agreement template to eliminate the formal framework of the relationship quickly and without any legal headaches. You can read their guide and get the American model here. But before you think about the number of shares or options to issue an advisor, there are a number of points to settle. What role does the consultant play? Will it provide marketing information or advice at the board level? How long should she spend each month and for how long? What is it paid? Establishing these points will help determine the right amount of fairness and ensure that everyone is on the same page in terms of expectations and responsibilities. The FAST agreement recommends standard equity grants for a single consultant. The FAST agreement includes a three-month “cliff” in the acquisition of equity that allows an unproductive advisory relationship to be terminated without the need to allocate equity in the first three months. 13.2. Exclusive Consent. This Agreement, including its Annexes, constitutes the sole agreement of the Parties and supersedes all prior oral proceedings and writings relating to the subject matter of this Agreement. UK Startups To complement the Founder Institute`s resource in this discussion, we have launched the consultative agreement. This free agreement template is UK-friendly and covers the usual big issues – appointment and termination, time commitment, roles and duties, fees, conflicts of interest and confidentiality. Of course, when discussing the arrangement, you may come across other points that you can include (exclude) or make other changes.

This form has been created for general information purposes only. They do not constitute legal advice, advertising, solicitation or tax advice. The submission of this form and the information it contains is not intended to establish a customer relationship and its receipt does not constitute justification. You should not rely on this document or such information for any purpose without seeking the legal advice of a duly licensed attorney, including, but not limited to, reviewing and advising on the terms of this form, the appropriate approvals required in connection with the transactions provided for in this form, and any securities laws and other legal matters; which are considered in this form or in the operations provided for in this form. An advisory contract must be used between a company and its consultant. The agreement sets out the expectations of the relationship, such as the work done on behalf of the consultant and compensation. The agreement should also include certain key conditions such as confidentiality and attribution of the work product. Advisors covered by the FAST agreement are founders and senior executives for strategic advice through advisory board roles, and these advisors are generally remunerated by equity. The FAST agreement is not designed for traditional project consulting and “work for hire” relationships. The Founder/Advisor Standard Model (“FAST”) was developed by the Founder Institute to help budding entrepreneurs in the startup programs we run globally set up advisory boards and connect with the mentors they interact with throughout the program. In 2011, the Founder Institute made the FAST agreement public, and since then we have made gradual updates to version 1 of the agreement.

On August 1, 2017, the Founder Institute released a draft version of version 2 that includes a number of improvements: 2. Compensation. In consideration for the services and other obligations to be provided by the Advisor, the Company shall indemnify the Advisor with equity of the type and amount specified in Schedule A, which is subject to an acquisition plan set out in Schedule A and the Agreement to Grant or Issue Equity to the Advisor. 8.3. Taxes; Insurance. The Consultant will be paid in accordance with IRS Form 1099 and will be fully responsible for any applicable taxes on any remuneration paid to the Consultant under this Agreement, as well as for compliance with all applicable labor and employment requirements relating to the Consultant`s self-employment, sole proprietorship, or any other form of business organization. LEGAL NOTICE: We strongly recommend that you tailor this document to your individual situation, as you may need additional clauses to better protect your business from possible legal issues. 6.2 Support. The Consultant undertakes to assist the Company in all reasonable ways in obtaining and enforcing patents, copyrights and other proprietary rights in all countries with respect to intellectual property, and the Consultant agrees to enforce patents, copyrights or similar applications and assignments to the Company upon request, as well as any other legal document, which the Company deems necessary to achieve the purpose of this Agreement in this regard. If, after the expiration of the term of this Agreement, the Consultant is asked to assist in accordance with this paragraph, he will be entitled to a fair and reasonable fee in addition to the reimbursement of the authorized costs incurred upon the prior written request of the Company.

1.2 Advisory services. The Consultant`s services to the Company under this Agreement include acting within the Advisory Board to provide the advice and other services that the Consultant and the Company have agreed to from time to time (the “Services”) as specified in Appendix A. 3.1 Term. The initial term of this Agreement will be one (1) year from the effective date set forth above and will automatically renew for additional terms of one (1) year until terminated in accordance with this Section. 13.6. Considerations. This Agreement may be executed in consideration, each of which shall be considered original, but which together constitute a single instrument. 13.8. Dispute Resolution. All disputes relating to this Agreement shall be subject to binding arbitration under the rules of the American Arbitration Association. 3.2 Termination.

Either party may terminate this Agreement with written notice to the other party for at least thirty (30) days (the “Termination Date”). HK Startups For Hong Kong-based startups, we have mapped the consulting agreement to a version suitable for use by Hong Kong-based startups. The link on the right will take you to the document. As proof, the parties to this consultative agreement concluded on the above date. The FAST agreement is used by tens of thousands of entrepreneurs and consultants each year to establish productive working relationships, business advice and support for a standardized amount of capital. 13.7. Advice from legal counsel. EACH PARTY ACKNOWLEDGES THAT, IN SIGNING THIS AGREEMENT, IT HAS HAD THE OPPORTUNITY TO SEEK THE ADVICE OF INDEPENDENT LEGAL COUNSEL AND HAS READ AND UNDERSTOOD ALL THE TERMS OF THIS AGREEMENT.

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