An Advisor Agreement should be signed by each of your mentors or advisors (person may also be a member of your startup’s advisory board). This agreement describes the advisor’s duties to your startup and how he or she will be compensated for those. Will the advisor be paid in cash, will he or she receive shares of Common Stock or be issued stock options, will his or her compensation be a combination of cash and shares of stock or stock options, or will it be something else? The Advisor Agreement also contains critical nondisclosure provisions, and it protects any intellectual property that the advisor in question develops for your startup in the performance of his or her duties (by ensuring that this intellectual property is fully owned by your startup). The Consulting Agreement generated by SmackDocs can be applied to advisors, however the Advisor Agreement has been specifically tailored to the services that most advisors provide – counsel and advice (rather than the creation of intellectual property).
SmackDocs uses an Advisor Agreement based on the FAST agreement published by the Founder Institute. The Advisor Agreement includes a description of the services to be provided by the advisor, the compensation to be paid to the advisor, the expenses incurred by the advisor that are reimbursable, the term of the advisory relationship, and provisions regarding confidential information and the ownership of intellectual property.