How much equity should an advisor get?

That is for your company and its advisors to decide. The template leaves the grant, its size and its vesting as placeholders, and states that the grant is subject to board approval and your equity plan.

Does this agreement grant the equity?

No. It records the intended grant. The equity itself is typically issued by board approval and a separate award agreement under the company's equity plan.

Are there tax considerations?

Often, yes. The template tells the advisor to consult their own tax and legal advisors; it does not give tax advice, and neither does XDocs.

Free template

Advisor agreement template

An advisor agreement formalizes a relationship with someone who helps a company with advice and introductions, usually in exchange for a small equity grant. It sets expectations on time, confidentiality and ownership of ideas. Edit it in the browser and send it for signature from the same page; the free plan includes 5 sends a month and never asks for a card.

Start free with this template

When to use it

Bringing on an advisor for a startup's product, fundraising or go-to-market.
Putting an informal mentoring arrangement on a written footing before granting equity.
Clarifying what an advisor can and cannot do on the company's behalf.

What's in it

1.Advisory services
2.Time commitment
3.Compensation
4.Expenses
5.Confidentiality
6.Intellectual property
7.Relationship and conflicts
8.Term and termination
9.General

Plus signature, name and date fields for company and advisor.

The full template

The text you start from, exactly as it opens in the editor. Bracketed blanks are yours to fill in; highlighted fields are filled by each signer.

Advisor Agreement

This Advisor Agreement (the “Agreement”) is entered into as of Date signed — Company between [Company legal name] (the “Company”) and [Advisor name] (the “Advisor”).

1. Advisory services

The Advisor will make themselves reasonably available to advise the Company on [areas of expertise, e.g. product strategy, fundraising, go-to-market], including [describe expected activities, e.g. a monthly call and introductions where appropriate].

2. Time commitment

The parties expect the Advisor to spend approximately [number] hours per month on these services.

3. Compensation

Equity: Subject to approval by the Company's board of directors, the Company will grant the Advisor [describe the award, e.g. an option to purchase [number] shares of common stock / [number] restricted shares], vesting [describe the vesting schedule]. The award will be governed by the Company's equity plan and a separate award agreement, which control if they differ from this summary.

Cash or other compensation: [none / describe].

The Advisor should consult their own tax and legal advisors about the award. The Company makes no representation about its tax treatment.

4. Expenses

The Company will reimburse reasonable expenses the Advisor incurs at its request, if approved in advance.

5. Confidentiality

The Advisor will keep the Company's non-public information confidential and use it only to advise the Company, during the term and for [three (3)] years after.

6. Intellectual property

Ideas, work product and inventions the Advisor creates specifically for the Company in providing these services are assigned to the Company. The Advisor's general knowledge and work unrelated to the Company remain the Advisor's.

7. Relationship and conflicts

The Advisor is an independent contractor, not an employee, officer or director, and cannot bind the Company. The Advisor may advise other companies, but will tell the Company about any role with a direct competitor.

8. Term and termination

This Agreement lasts [two (2)] years unless renewed in writing. Either party may end it at any time with written notice. Vesting, if any, stops on termination as set out in the award agreement.

9. General

This Agreement is governed by the laws of the State of [State]. It is the entire agreement on its subject and may be amended only in writing signed by both parties.

Signatures

Company

Signature: Signature — Company

Name: Full name — Company

Date: Date signed — Company

Advisor

Signature: Signature — Advisor

Name: Full name — Advisor

Date: Date signed — Advisor

This template is a general-purpose starting point written in plain English for use in the United States. It is not legal advice and has not been reviewed for your situation; for anything high-stakes, have a lawyer review the final version.

How to send it for signature

Step 1
Start from the template
It opens as a document in the editor with both parties' signature, name and date fields already placed. Fill in the bracketed blanks and change any clause.
Step 2
Add who signs
Put an email address on each party, set the signing order if it matters, add an access code if you want one, and add a viewer for anyone who only needs to read it.
Step 3
Send it and track it
Each signer gets a link and signs in the browser, no account needed. You see who has opened and signed, and everyone gets the completed PDF with a certificate of completion.