This form is an acknowledgement to member who agrees to be an advisory member. The form stipulates the advisory member's role and responsibilities as well as their compensation. It also includes clauses for termination, confidentiality and indemnification.
Each venture capital fund has what used to be called an Evaluation Committee which is now typically called the Advisory Committee or Advisory Board. The function of the Advisory Board is, in effect, to act as an intermediary representing the Limited Partners to deal with, for example conflicts of interest which the General Partner elects to run by the Advisory Board. Thus, for example, the General Partner might want to invest the limited partnership’s capital in a portfolio company in which one or members of the General Partner have an interest and that conflict needs to be cleared with the Advisory Board. The Advisory Board is also used to mediate and adjudicate valuation issues, judgments on which are often subject to challenge.