Advisory board consists of a group of intellectuals or learned people, who provide their knowledge, skills, and experiences to the company or a particular business. So to meet the requirement an agreement is made between the head of the company and the advisory board which is called the advisory board agreement .The advisory board can make recommendations, provide information, key contacts and can also add credibility to your business. Formally they do not have any legal right to take decisions about business or the particular company, they are working with.Here is preview of this Advisory Board Agreement Template,
Terms and Conditions of the Advisory Board Agreement
In the agreement the relationship of the advisory board with the company should be addressed in detail.
Expectations and obligations should be described, as well as the working hours of the adviser or working days in a month.
Payment schedule should be also described in detail. Extra bonuses, if any should also be mentioned. Some companies also pay per meetings as well.
If giving him any rental allowance, or if the company is going to reimburse all this should be part of the agreement.
It should be stated that the adviser is only an employed worker of the company.
You can set the terms, that he is bound to be confidential about the company’s information otherwise he will be held responsible.
The contract should also have an provision which do not allow the advisers to work with your competitors, so it does not effect your business at all.
This provision is introduced by advisers that they are free to full fill services by the agreement.
Any recommendation or suggestion given by the adviser to the company about a particular product or company affair, it should be stated in the agreement that he takes full responsibility of his recommendations and their results as well.
You must have a termination provision, so in case the relationship does not work accordingly you can fire the adviser. If the adviser is not giving your company the required time and not doing his duties honestly, you can always terminate the contract.
Common Mistakes in Advisory Board Agreements
All the services and obligations should be discussed with the adviser before writing in the contract.
Negotiation on fees and his payment plans should also be discussed before.
Termination policy and refund policy should also be addressed before putting them into witting.
On terms which you and the adviser have agreed upon word to word should be drafted, so there will be no chance of mistrust.
Tips for Effective Advisory Board Agreements
The owner should be realistic about the expectations not idealistic.
Set a target in the contract and than let the advisory board work on it freely.
Particulars of every member with his name, duty, services and payment should be in the contract.
Always have provision for confidentiality in the contract.
Give your advisers incentives and respect to gain from them.
Termination conditions are very important in the contract, make good use of them for finding the right person for your business.
Here is download link of this Advisory Board Agreement Template,
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