An advisory contract between a company and its advisor should be used. The agreement defines the expectation of the relationship, such as the work done on behalf of the advisor and compensation. The agreement should also define some key concepts, such as confidentiality and the allocation of labour products. The Standard Founder/Advisor Template («FAST») was developed by the Founder Institute to help emerging entrepreneurs in the startups we operate around the world and connect with the mentors they interact with throughout the program. In 2011, the Founder Institute published the FAST agreement for the public, and since then we have been gradually updating version 1 of the agreement. On August 1, 2017, the Founder Institute released a preview version of version 2, which contains a number of improvements: contractors should take care of consultants carefully. Just because someone has a good reputation or has expertise doesn`t mean they`re a good advisor or there`s the level of good chemistry needed. The Founder Institute recommends that an entrepreneur work with a potential consultant for at least a month and spend at least 8 hours together before discussing the FAST agreement. The FAST agreement includes a three-month «pitfall» in equity admission, which makes it possible to end an unproductive advisory relationship without having the weight of the equity allocation in the first three months.
2. Indemnification. In return for the services to be provided by the adviser and other obligations, the entity shall compensate the adviser with own funds of the kind and amount set out in Appendix A, which shall be subject to an unwavering plan in accordance with Annex A and the agreement to grant or issue own funds to the adviser. 13.2. Single Agreement. This Agreement, including the Annexes, constitutes the exclusive agreement of the parties and supersedes all prior hearings and writings relating to the subject matter of the Contract. The FAST agreement recommends standard equity grants for a single advisor. It`s not uncommon for a tech startup to allocate a 5% equity pool to a group of strategic advisors or an advisory board.
The advisors referred to in the FAST agreement are founders and senior managers for strategic advice through advisory board roles, and these advisors are normally compensated by equity. The FAST agreement is not designed for traditional project consulting and «work for safety» relationships. The new fast versions will be refined on the basis of feedback. If you have any comments, please contact the contact form at the bottom of this page to submit them. 3.2 Termination. Either party may terminate this Agreement by written notice to the other party of at least thirty (30) days (the «Termination Date»). 6.1 Ownership. All ideas, inventions, improvements, methods, processes, works of authorship and other forms of intellectual property designed, reduced or developed by the Consultant during the term of the Contract, alone or in connection with others, in connection with the provision of the Services, including designs, data, software code, ideas, inventions, the know-how, materials, trademarks, methods, processes, tools, interfaces and other forms of technology, and all intellectual property rights of any kind (together the «Work Product») are the exclusive and exclusive property of the Company. .