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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."
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
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
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
Financial Services
Real Estate
Mergers & Acquisitions
Private Equity
Venture Capital
Investment Banking
Business Services
Professional Services
Technology
Manufacturing
Commercial Real Estate
Industrial
Healthcare
Energy
Legal
Finance
Business Development
Corporate Development
Mergers & Acquisitions
Compliance
Executive Leadership
Strategic Partnerships
Investment
Operations
Business Development Manager
Chief Executive Officer
Chief Financial Officer
Corporate Development Director
Mergers & Acquisitions Director
Investment Manager
Business Broker
Corporate Finance Manager
Legal Counsel
Compliance Officer
Finance Director
Business Owner
Entrepreneur
Investment Advisor
Business Development Executive
Strategic Partnership Manager
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