The Business Development Contractor Agreement is essential for companies operating in Hong Kong that engage independent contractors for business development activities. This document is specifically designed to comply with Hong Kong legal requirements while protecting both parties' interests in a business development relationship. It's particularly relevant when companies want to expand their business through external expertise without creating an employment relationship. The agreement covers crucial aspects including service scope, compensation, intellectual property rights, confidentiality, and non-competition provisions, while clearly establishing the contractor's independent status to avoid employment misclassification under Hong Kong law. This document is typically used when engaging professionals for market expansion, client acquisition, partnership development, or similar business growth initiatives.
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1. Parties: Identifies and defines the contracting parties - the company and the contractor
2. Background: Sets out the context of the agreement and the parties' intentions
3. Definitions: Defines key terms used throughout the agreement
4. Appointment and Status: Establishes the contractor's appointment and explicitly confirms independent contractor status
5. Scope of Services: Details the business development services to be provided
6. Term and Termination: Specifies the duration of the agreement and termination provisions
7. Compensation and Payment Terms: Details fees, commission structures, and payment processes
8. Obligations of the Contractor: Lists the contractor's duties, responsibilities, and performance standards
9. Obligations of the Company: Outlines the company's commitments and support to the contractor
10. Intellectual Property Rights: Addresses ownership and usage of IP created during the engagement
11. Confidentiality: Protects sensitive business information
12. Non-Competition and Non-Solicitation: Restricts competitive activities and client solicitation
13. Indemnification and Liability: Allocates risks and establishes liability limits
14. General Provisions: Contains standard boilerplate clauses including governing law, notices, and amendment procedures
1. Performance Targets: Specific KPIs and targets, used when the engagement is heavily performance-based
2. Territory and Exclusivity: Defines geographical scope and exclusivity rights, used when the contractor has exclusive territories
3. Insurance Requirements: Detailed insurance obligations, used when specific coverage is required
4. Training and Support: Outlines training provided by the company, used when specific onboarding or ongoing training is needed
5. Compliance with Specific Regulations: Additional compliance requirements, used when operating in regulated industries
6. Sub-contracting Rights: Rules regarding delegation of duties, used when sub-contracting might be permitted
7. Marketing and Branding Guidelines: Rules for representing the company, used when contractor has significant client-facing roles
1. Schedule 1 - Services Description: Detailed breakdown of business development services and deliverables
2. Schedule 2 - Compensation Structure: Detailed fee calculations, commission rates, and bonus structures
3. Schedule 3 - Territory Map: Geographical areas covered by the agreement
4. Schedule 4 - Approved Client List: List of existing clients and potential targets
5. Schedule 5 - Reporting Requirements: Templates and timing for activity and performance reporting
6. Appendix A - Company Policies: Relevant company policies the contractor must comply with
7. Appendix B - Expense Policy: Guidelines for expense claims and reimbursement procedures
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