What is a FAST Agreement ?
A FAST Agreement is a short, simple contract by which a company engages a person to act as its mentor or advisor.
Under a FAST Agreement, the person does not receive any cash compensation for his service in return but instead has the right to receive shares in the future.
By using a FAST Agreement, the advisor serves as an independent consultant, not as an employee.
Key points included
- Services you expect to receive from the advisor;
- Type and amount of shares that the advisor will be entitled to receive;
- Schedule for vesting of the shares;
- Mechanism under which the advisor will receive shares; and
- How long the notice period is for terminating the engagement.