Advisory Board Agreement Template for United Arab Emirates

A comprehensive legal agreement template designed for UAE-based companies to establish and govern relationships with advisory board members, ensuring compliance with UAE Federal laws including the Commercial Companies Law and Civil Code. This document outlines the terms of engagement, responsibilities, compensation, confidentiality obligations, and intellectual property rights while maintaining the independent contractor status of advisors. The agreement incorporates specific provisions required under UAE law and considers local business practices, making it suitable for both local and international advisory board members serving UAE companies.

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What is a Advisory Board Agreement?

The Advisory Board Agreement Template is essential for UAE companies seeking to formalize relationships with experienced professionals who provide strategic guidance but are not part of the main board of directors. This document is designed to comply with UAE Federal Law No. 32 of 2021 (Commercial Companies Law) and related regulations, while establishing clear boundaries between advisory and employment relationships. It addresses key aspects including appointment terms, compensation, confidentiality, intellectual property rights, and termination provisions, with specific consideration for UAE business practices and legal requirements. The template is particularly valuable for companies looking to enhance their governance structure with external expertise while maintaining proper legal documentation and risk management.

What sections should be included in a Advisory Board Agreement?

1. Parties: Identification of the company and the advisor, including full legal names and addresses

2. Background: Context of the agreement and brief description of the company and advisory board's purpose

3. Definitions: Key terms used throughout the agreement

4. Appointment and Term: Formal appointment of the advisor, term length, and renewal provisions

5. Role and Responsibilities: Detailed description of advisor's duties, time commitment, and participation requirements

6. Independence and Status: Clear statement that advisor is an independent contractor, not an employee

7. Compensation: Details of fees, payment terms, and expense reimbursement

8. Confidentiality: Obligations regarding confidential information and trade secrets

9. Intellectual Property: Ownership and assignment of IP created during the advisory relationship

10. Conflicts of Interest: Disclosure requirements and prohibited activities

11. Representations and Warranties: Standard declarations about capacity, authority, and no conflicts

12. Termination: Grounds for termination, notice periods, and consequences of termination

13. General Provisions: Standard boilerplate clauses including governing law, notices, and amendment procedures

What sections are optional to include in a Advisory Board Agreement?

1. Equity Compensation: Terms of any share options or equity grants, when advisor receives equity as part of compensation

2. Travel and Additional Services: Specific terms for travel requirements and any additional services beyond standard advisory duties

3. Insurance: Requirements for professional liability insurance, when advisor provides specific professional advice

4. Data Protection: Enhanced data protection provisions when advisor will handle personal or sensitive data

5. Non-Competition: Restrictions on competing activities, when appropriate and enforceable

6. Compliance with Company Policies: Requirement to comply with specific company policies, when applicable

7. Indemnification: Mutual or one-way indemnification provisions, when heightened liability concerns exist

What schedules should be included in a Advisory Board Agreement?

1. Schedule 1 - Services Description: Detailed outline of specific advisory services and deliverables

2. Schedule 2 - Compensation Terms: Detailed breakdown of fees, payment schedule, and expense policy

3. Schedule 3 - Meeting Schedule: Expected frequency and format of advisory board meetings

4. Schedule 4 - Confidential Information: Specific categories of confidential information covered

5. Schedule 5 - Approved Outside Activities: List of pre-approved activities or positions with other organizations

6. Appendix A - Code of Conduct: Company's code of conduct and ethical guidelines for advisors

7. Appendix B - Equity Plan Terms: Detailed terms of any equity compensation plan, if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Publisher

Genie AI

Document Type

Advisory Agreement

Cost

Free to use

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