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Finder's Fee Commission Agreement Template for Canada

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Key Requirements PROMPT example:

Finder's Fee Commission Agreement

"I need a Finder's Fee Commission Agreement for my technology consulting company based in Ontario, where we'll pay 2% commission to individuals who introduce us to new clients that result in contracts worth over $100,000."

What is a Finder's Fee Commission Agreement?

The Finder's Fee Commission Agreement is essential in Canadian business transactions where intermediaries facilitate introductions leading to business opportunities. This document is commonly used when companies or individuals seek to expand their business network, secure investment, or identify acquisition targets through third-party intermediaries. The agreement must comply with Canadian federal and provincial regulations, particularly securities laws and business broker requirements. It typically includes detailed provisions on commission structures, payment triggers, and protection mechanisms for both parties. The document is crucial for avoiding future disputes by clearly defining what constitutes a successful introduction and establishing the terms under which the finder's fee becomes payable. Given the regulatory complexity in Canada, particularly regarding securities transactions and business brokerage, the agreement must be carefully structured to ensure compliance while protecting all parties' interests.

What sections should be included in a Finder's Fee Commission Agreement?

1. Parties: Identification of the Principal (company/individual seeking the introduction) and the Finder (person/entity providing the introduction service)

2. Background: Context of the agreement, including the Principal's business and desire for introductions to potential business opportunities

3. Definitions: Key terms including 'Successful Introduction', 'Target', 'Commission', 'Qualifying Transaction', and 'Confidential Information'

4. Appointment: Formal appointment of the Finder and scope of authority

5. Finder's Services: Detailed description of services to be provided by the Finder

6. Commission Structure: Details of commission rates, calculation methods, and payment terms

7. Payment Terms: Timing of payments, method of payment, and any conditions precedent to payment

8. Term and Termination: Duration of the agreement and circumstances for termination

9. Confidentiality: Obligations regarding confidential information and trade secrets

10. Non-Circumvention: Prevention of direct dealings between Principal and introduced parties to avoid commission

11. Representations and Warranties: Standard warranties about capacity, authority, and compliance with laws

12. Governing Law: Specification of Canadian law and jurisdiction

13. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment

What sections are optional to include in a Finder's Fee Commission Agreement?

1. Exclusivity: Used when the Finder is granted exclusive rights for specific targets or territories

2. Regulatory Compliance: Required when the agreement involves regulated activities such as securities or real estate

3. Tail Period: Defines period after termination during which Finder remains entitled to commission

4. Dispute Resolution: Alternative dispute resolution procedures, used when parties prefer arbitration or mediation

5. Insurance Requirements: Used when Principal requires Finder to maintain specific insurance coverage

6. Marketing and Promotion: When Finder is authorized to market or promote the Principal's business

7. Referral Network: When Finder is permitted to work with sub-finders or referral partners

What schedules should be included in a Finder's Fee Commission Agreement?

1. Commission Rate Schedule: Detailed breakdown of commission rates for different types of transactions or thresholds

2. Target List: List of pre-approved potential targets or industries

3. Excluded Parties: List of entities excluded from the agreement due to existing relationships

4. Required Information Form: Template for submitting potential target information

5. Compliance Requirements: Specific regulatory requirements and compliance procedures

Authors

Alex Denne

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

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