Start-Up Advisor AgreementThis Advisor Agreement is for a company to hire an advisor in its early stages, and provides for payment through an employee share option plan.
This Advisor Agreement allows start-up founders to solicit the services of an advisor in exchange for options.
This Advisor Agreement assumes that the advisor will receive only options, and not cash. It also assumes that the advisor is operating as independent contractor for the company, and not an employee (notwithstanding their inclusion in the employee share option plan).
It may be important to obtain legal and financial advice regarding whether an employee share option plans is the most adequate arrangement for giving equity to an advisor. The levels of work and percentages of options issued are mere suggestions, and should be tailored to reflect the company's business plan.
What does the Advisory Board Member Agreement cover?
The service descriptions and equity compensation levels are just suggestions (based on what we often see in the market) — they can and should be tailored according to the specific circumstances for each advisor.
Services to be provided;
Term and commencement date;
Hours and level of service;
Advisor equity and vesting arrangements;
Independence of advisor, expenses, GST and responsibilities of advisor; and
Termination, IP and confidentiality.