The Startup Advisory Board Agreement is essential for early-stage companies seeking to formalize relationships with experienced advisors who can provide strategic guidance, industry expertise, and networking opportunities. This document, governed by U.S. law, typically includes provisions for equity compensation, confidentiality protections, and specific advisory responsibilities. It's particularly crucial for startups raising capital or expanding operations, as it helps establish professional governance structures while protecting the company's intellectual property and confidential information.
Startup Advisory Board Agreement for the United States
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Key Requirements PROMPT example:
Startup Advisory Board Agreement
"I need a Startup Advisory Board Agreement for our AI technology startup to bring on a senior tech executive as an advisor, offering 1% equity vesting over 2 years and including strong IP protection clauses, to be effective from March 2025."
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1. Parties: Identifies the company and the advisor, including full legal names and addresses
2. Background: Explains the context of the agreement and the company's desire to engage the advisor
3. Definitions: Defines key terms used throughout the agreement
4. Services: Outlines the specific advisory services to be provided
5. Term and Termination: Specifies the duration of the agreement and conditions for termination
6. Compensation: Details any compensation, including equity grants or cash payments
7. Confidentiality: Defines confidential information and protection obligations
8. Intellectual Property: Addresses ownership and assignment of any IP created during the advisory relationship
1. Non-Compete: Restricts advisor's involvement with competing businesses. Include when advisor has access to sensitive competitive information
2. Non-Solicitation: Prevents advisor from soliciting employees or customers. Include when advisor has significant contact with key stakeholders
3. Insurance: Requirements for maintaining professional liability insurance. Include when advisor provides specialized professional services
4. Expenses: Terms for reimbursement of expenses. Include when advisor is expected to incur expenses in role
1. Schedule A - Services Description: Detailed outline of specific advisory services and responsibilities
2. Schedule B - Compensation Terms: Detailed terms of equity grants, vesting schedules, or cash compensation
3. Schedule C - Conflicts of Interest: List of pre-existing conflicts or competing interests
4. Exhibit A - Form of Confidentiality Agreement: Detailed confidentiality terms if not included in main agreement
5. Exhibit B - Stock Option Agreement: If equity compensation is offered, details of stock option terms
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