Advising relationships are unique, with unique challenges. We worked hard with a number of experience attorneys to create a simple, standard advisor agreement that we think addresses some of the most common issues that we've seen in advising engagements. When you're ready to formalize your advising relationship, just fill in a few blanks and you're ready to go.
The highlights of the agreement are:
- Clear expectations. Both parties clearly specify what the goals, activites, and time commitments of the relationship are. Sounds like a no-brainer, but you'd be surprised how infrequently this happens.
- 30-day "dating" period. If the relationship doesn't work, no compensation is due and the agreement expires.
- 2-year working term. 4-year vesting is great for employees and directors, but the advisor's expertise has a shorter half-life. After the initial 2 years, the advisor remains loosely available to the company but with a dramatically reduced time commitment.
- Stock vests monthly, as it is earned. Advisors get the company's stock option agreement and paper.
- Proprietary rights, confidentiality, non-compete, conflicts, assignments, compensation and term agreements. Standard legal boilerplate.
We hate paperwork just as much as the next person (if not more). Our goal is to get you through the legal stuff as quickly and cheaply as possible, so you can focus on the fun stuff—advising.
|Sales/Business Development Advisor|