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Advisory Boards Stephen M. Bayle Consulting for Startups & Emerging Companies [email_address] 978-505-1243

Goals for Boards Establish credibility by association Networking & connections from Board members Review & input on company’s strategy Feedback on company’s products or services Stephen M. Bayle

Types of Boards Customer Help with product development, marketing & sales Strategic Help with strategy, company development & strategic alliances Stephen M. Bayle

Member Obligations Public relations Allow association to be publicized (Web site, pr campaign) Willing to talk to press Attend meetings & participate Respond to phone calls & emails Respect company’s confidentiality & non-compete issues Help recruit other members Provide strategic& networking help Provide feedback on product or service Stephen M. Bayle

Benefits to Members Ringside seat at entrepreneurial, high growth firm Networking & interaction with other members Ability to influence company & industry Chance to be associated with success Potential financial benefit from shares Stephen M. Bayle

Company’s Obligations Protect member’s time Protect member’s confidentiality (contact info) & reputation Make meetings & interactions interesting, stimulating & rewarding Provide inside look at company’s strategy & products Stephen M. Bayle

Board Composition Membership – 7 to 10 More than 10 hard to manage Plan on at least 2 not attending meetings - need about 7 to get attendance of 5 Get mix of expertise/experience/industry Chairman Helps with agenda & scheduling meetings Gets additional shares as compensation Stephen M. Bayle

Member Qualifications Industry experience Startup experience Advisor experience Subject matter expertise (engineering, marketing, finance, etc.) Time available Willingness to work for company No conflicts Chemistry with founders/principals Name value Stephen M. Bayle

Recruiting Members Founder’s contacts Investors’s contacts Cold calls Consider prospect’s geographic location (impact travel costs) Look for successful entrepreneurs who may have time available Stephen M. Bayle

Term One-year renewable Co-terminus with other members Stephen M. Bayle

Compensation No cash comp Pick up expenses involved in attending meetings (travel) Stock options Vest in one year Additional options for service beyond one year Total for board = .5% - 1.0% of shares outstanding Stephen M. Bayle

Letter of Agreement Outlines mutual expectations & responsibilities Lists terms & conditions Accompanied by non-disclosure/non-compete agreement Stephen M. Bayle

Board Management Founders/CEO must be involved VP of Marketing can manage day-to-day functions – especially for customer boards Consider once a year joint meeting of Board of Directors & Board of Advisors Be wary of spending too much time Stephen M. Bayle

Meetings In person Expensive, time-consuming, requires pre & post meeting work Most valuable to members & to company 1 to 3 times per year; 2x per year optimal Virtual Use Web technology Saves on T & E Easier to schedule Save transcripts Stephen M. Bayle

In Person Meetings Place Off site – away from distractions – hotel meeting room Time ½ day +; less not worthwhile for travel time & cost; more may be hard to schedule Schedule a years meetings in advance Pre-meeting dinner –night before for social agenda Agenda Develop with Chairman, member input Get input from management team Clear objectives & deliverables Stephen M. Bayle

In Person meetings (cont) Member preparation Review agenda Homework assignment Make interactive – minimize presentations, maximize feedback, discussion, interaction Use company scribe to take notes Stephen M. Bayle

Virtual meetings Time should be shorter than in-person (2+ hours) Make sure technology works beforehand! Dry run with staff to debug process Stephen M. Bayle

Post meeting follow-up Thank you notes/emails/call Reimburse T & E expenses Send out meeting notes & action items Confirm schedule for next meetings Touch base with those who did not attend Stephen M. Bayle

Public Relations Post board bios on Web site Include their email & links to their Web sites if they wish Be careful to not imply that their employer is endorsing the company PR should focus on the Board in toto, not on individuals Prepare board members for press & investor questions Stephen M. Bayle

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