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An Introduction to Advisor Agreements on Clara
An Introduction to Advisor Agreements on Clara
Updated over a week ago

Get advice from the experts and compensate them for their time and know-how.

What is an Advisor Agreement?

  • An Advisor Agreement is a contract between an advisor and your startup, setting out the advisor's role and compensation. 

  • Typically used with high-level strategic advisors, independent board members or members of your advisory board, compensation is in the form of a grant of options from your startup’s topco to the advisor (not cash). 

Why generate this document?

Generate this document to onboard your advisors and agree their responsibilities and compensation.

What does a Clara Advisor Agreement do? 

  • Describes the advisor’s role e.g. sharing specialist experience or knowledge, providing general business advice and guidance, or making introductions for your startup. 

  • If your startup has engaged (i.e. established a working relationship with) several advisors and has an advisory board, the advisor will be required to attend regular meetings of the advisory board.  When generating this document, Clara will ask you to select the advisor’s other duties from a list.

  • Sets out in summary form the details of equity compensation for the advisor.

  • Is governed under English law with a dispute resolution mechanism using expedited ICC arbitration procedures to be held in a place you can select in the form.

Clara recommends...

  • Generating an automated Share Incentive Plan for your startup's topco, to grant options to your advisors (as well as employees, consultants and other team members).

  • Generating a Grant Agreement for your advisors under your startup’s Share Incentive Plan to outline the share option compensation mentioned in the Advisor Agreement in more detail.

  • Entering into an Intellectual Property Assignment Agreement with an advisor before they begin working for you, making the signing of the agreement a condition of them getting the role in your startup.

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