1. Advisory Board Charter Template
Strategy and Board Initiative

2. Intro
This slide template is intended for the Strategy and Board Initiative participants
The following slides document the main aspects of setting up an Advisory Board
This slide set can be used as a ”contract” for the cooperation between firms and Advisors
A separate legal contract may also be signed, if needed

3. Advisory Board Composition, Parties
Firm: Firm name
Firm representative1, chairman
Firm representative2
Advisors:
NN1
NN2

4. Experience of the Advisors
Describe the main relevant experience of each Advisor

5. Ownership and Ownership Strategy
Ownership Strategy, examples:
”The company will be sold in 3-5 years at a price exceeding 20 M€”
”Long-term ownership: strong growth during the next 3 years, high profitability thereafter”
”We want to keep working for a long time in this company”
Ownership
Owner 1: zz%
Owner 2: zz%
...

6. Expectations of the Firm
Describe the main expectations of the Firm for the Advisory Board work

7. Advisory Board Charter
Describe the scope and focus of the Advisory Board, as well as the authority, if any
An example given below:
The advisory Board provides advice and non-binding recommendations to the Board and Executives of the Firm
The Board members use their experience to support the growth and value creation of the firm, as expressed by its owners
Board focuses on following areas:
Vision and mission of the firm
Strategy formulation
Strategy deployment
Positioning of firms offering

8. Objectives for the Advisory Board
Describe specific objectives of the Advisory Board work, example:
By end of the term the Advisory Board aims to achieve the following (examples):
Review and renew the current strategy
Define a market entry strategy for market XXX
Identify and select strategic partnerships in the areas of ZZZ
Introduce effective formal Board practice for the Firm

9. Commitments
Describe the agreed period of Advisory Board work, as well as the commitments parties have made to this work, e.g.
“The Advisory Board shall be operational between May 1, 2012 and Sept 30, 2012
There shall be at least n meetings during this period
All participants will sign a non-disclosure agreement
No compensation is paid for the Advisory Board members”

10. Advisor Agreement (optional)
Parties and purpose
Background
Company’s status and development needs
Advisor’s key competencies
Advisory Board Charter and Mission
Duration
Remuneration and expenses
Confidentiality
Non-solicitation
Independent contractor
Limitation of Liability
Governing law
Date and signatures

11. Advisor Agreement -- Details
Contract topic
Explanation
Parties and purpose
Company, advisor(s) and agreement’s purpose
Background
Company’s status and development needs
Where are we now; opportunities and challenges
Advisor’s key competencies
What advisor will bring with him/her for development
Advisory Board Charter and Mission
Role of AB and relation to mgmt and company board
Duration
When to start and close the process
Remuneration and expenses
Advisor compensation and other costs, travelling, etc.
Confidentiality
What is confidential and how long
Non-solicitation
Non-compete, no recruitment
Independent contractor
Not an employee
Limitation of Liability
Legal liabilities of advisors, if any