A sample advisors agreement template that you can alter and adapt to your company.
Set an equity budget for your advisor program just like you do for your employee option pool. We recommend committing 1-1.5% of your fully diluted share count.
Advisors typically get shares of common stock, just like employees, which are subject to vesting. This common stock is usually either Non-Qualified Stock Options (NSOs) or Restricted Stock Agreements (RSAs). Check with your attorney to determine which type of stock to grant your advisors.
The length of the vesting period determines the rate at which advisors earn equity. A 10,000 share grant vesting over 2 years pays out at double the rate of a 10,000 share grant vesting over 4 years. We recommend 2 or 3 year vesting periods for advisors.
Consider offering more equity as they hit certain milestones (i.e. # of warm referrals into key accounts or closed-won business as a result of their referrals).
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