Legal Documents

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.

What is a “FAST”?

 
FAST stands for “Founder Advisor Standard Template” and was created by the Founder Institute. In the Zegal app, you have the flexibility of stating any percentage of equity compensation that you wish to give to your advisor.
 
You should note that the FAST Agreement is intended for an advisor or a mentor who will assume an advisory role in the business. If you wish to engage this person to give core input to your business or perform executive functions, use an Employment Contract or a Director’s Service Agreement (if the person will be appointed as a director). 
 

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.

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