As businesses grow and expand, they may choose to bring on board advisors to help guide their operations and provide valuable expertise. When entering into such an arrangement, it’s important to have a clear and well-defined board advisor agreement in place.
A board advisor agreement template is a document that outlines the terms and conditions of the arrangement between the board advisor and the company. It serves as a formal agreement that can help avoid misunderstandings and disputes down the road.
Here are some key elements that should be included in a board advisor agreement template:
1. Roles and responsibilities: The agreement should clearly define the board advisor’s role and responsibilities. This includes the scope of their expertise, the nature of their contributions, and their level of involvement in the company’s decision-making process.
2. Compensation: The agreement should specify the board advisor’s compensation, including any equity or other forms of compensation they may receive. It should also outline how often the compensation will be paid and how it will be calculated.
3. Term and termination: The agreement should specify the length of the board advisor’s term and the circumstances under which the agreement can be terminated. This includes whether there is a notice period required and how the termination process will be handled.
4. Confidentiality: The agreement should include a confidentiality clause that outlines the board advisor’s obligations to keep confidential information secure. This includes any trade secrets, proprietary information, or other sensitive information they may have access to.
5. Intellectual property: The agreement should specify how any intellectual property developed during the course of the board advisor’s tenure will be handled. This includes any patents, trademarks, or other forms of intellectual property that may arise from their work with the company.
6. Non-compete: The agreement may include a non-compete clause that restricts the board advisor from working with competing companies for a certain period of time after their tenure with the company ends.
By including these key elements in a board advisor agreement template, companies can ensure that their arrangement with board advisors is clear, fair, and mutually beneficial. This can help build trust and facilitate a productive working relationship between the board advisor and the company.