Founders before giving equity to an advisor, decide if it`s worth it. If you generate income, can you afford to pay for it instead? If you can`t afford it, a capital agreement could be the beginning of a useful partnership. First-class companies can check Carta Launch if they need help issuing equity, whether they are consultants, investors or collaborators. UK Startups In order to complement the founding institute`s resource for this discussion, we have launched the Agreement Advisor. This free agreement model is favourable to the United Kingdom and covers the usual broad themes: deadlines and dates, deadlines, roles and obligations, fees, conflicts of interest and confidentiality. Of course, when you discuss the arrangement, you may run into other points to include them (exclude them) or make other changes. 2. Compensation. Councillors are not entitled to cash compensation; However, Advisor is entitled to obtain the equity compensation shown below at an exercise or purchase price equal to the fair value of the Company`s common share, documented in the current stock options agreement or in the limited share purchase agreement signed by Advisor and the entity.
The Company will seek written authorization or hold a board meeting within 90 days of the date of this agreement to approve the compensation of advisors and to enter into final agreements to purchase shares or stock compensation options. If the company does not provide the above documents within 90 days, the advisor has the right to contact the directors of the company and, to the extent that the advisor must take steps to enforce this agreement, the company agrees to pay all reasonable expenses of the advisor in relation to the company. The agreement is flexible and both parties can opt out if the situation is not right for them. The FAST document is freely available online, so you can study it before using it. I started with FAST and the form saved me hours, money and stress. Plus, it helped me ensure a handful of relationships. Contractors should work carefully with consultants. Just because someone has a good name or domain expertise doesn`t mean they`re a good advisor or there`s the right level of chemistry. The founding institute recommends that a contractor work with a potential consultant for at least one month and spend at least 8 hours together before discussing the FAST agreement. The FAST agreement includes a three-month “stumbling block” on share participation, which allows an unproductive advisory relationship to end without having the weight of the capital allocation in the first three months. This consultant agreement was established by Wilson Sonsini only for informational purposes.