A Startup Advisor Agreement is essential when engaging experienced individuals to provide strategic guidance to early-stage companies. This document is particularly relevant in the United States startup ecosystem, where advisory relationships are common and often involve equity compensation. The agreement typically covers key aspects such as the scope of advisory services, compensation structure, confidentiality provisions, intellectual property rights, and term of engagement. It's crucial for protecting both the startup's interests and the advisor's rights, especially in situations involving sensitive information or equity-based compensation. The agreement should comply with both federal and state-specific regulations, particularly when equity is involved, and should be tailored to address the specific nature of the advisory relationship and industry requirements.
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Key Requirements PROMPT example:
Startup Advisor Agreement
"I need a Startup Advisor Agreement for our AI technology startup, bringing on a technical advisor with 5% equity vesting over 3 years starting March 2025, with specific provisions for protecting our machine learning IP and ensuring monthly advisory meetings."
1. Parties: Identification of the startup company and the advisor, including full legal names and addresses
2. Background: Brief context about the startup and the purpose of engaging the advisor
3. Definitions: Key terms used throughout the agreement
4. Services: Detailed description of advisory services to be provided
5. Term and Termination: Duration of the agreement and conditions for termination
6. Compensation: Details of payment, equity, or other forms of compensation
7. Confidentiality: Obligations regarding confidential information
8. Intellectual Property: IP ownership and assignment provisions
1. Non-Compete: Restrictions on competitive activities when advisor works with multiple companies or in same industry
2. Non-Solicitation: Restrictions on soliciting employees or customers when advisor has access to key relationships
3. Expense Reimbursement: Terms for reimbursing advisor expenses when advisor may incur expenses on company's behalf
4. Insurance: Requirements for maintaining professional insurance when advisor provides services with liability risks
1. Schedule A - Services Description: Detailed outline of specific advisory services
2. Schedule B - Compensation Terms: Detailed breakdown of compensation structure
3. Schedule C - Equity Grant Terms: Details of any equity compensation and vesting schedule
4. Appendix A - Confidential Information: Specific types of confidential information covered
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