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Finders Fee Consulting Agreement for Hong Kong

Finders Fee Consulting Agreement Template for Hong Kong

A comprehensive agreement governed by Hong Kong law that establishes the terms and conditions under which a finder or consultant will identify and introduce potential business opportunities, partners, or clients to a company in exchange for a fee. The document outlines the scope of services, success criteria, fee structure, payment terms, and compliance requirements specific to Hong Kong's regulatory environment, including considerations under the Securities and Futures Ordinance and Prevention of Bribery Ordinance. It provides clear mechanisms for documenting introductions and calculating fees while protecting both parties' interests through confidentiality and non-circumvention provisions.

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What is a Finders Fee Consulting Agreement?

The Finder's Fee Consulting Agreement is essential for businesses operating in Hong Kong's dynamic commercial environment where professional intermediaries play a crucial role in facilitating business connections and opportunities. This document is typically used when a company wishes to formally engage an individual or firm to identify and introduce potential business partners, acquisition targets, investors, or clients. The agreement addresses key aspects required under Hong Kong law, including clear definition of services, fee structures, and regulatory compliance requirements. It is particularly important in Hong Kong's business culture where relationships and introductions are fundamental to business development, while ensuring compliance with local regulations including the Securities and Futures Ordinance and anti-bribery laws.

What sections should be included in a Finders Fee Consulting Agreement?

1. Parties: Identification of the company engaging the finder and the finder/consultant

2. Background: Context of the agreement and brief description of the business purpose

3. Definitions: Key terms used throughout the agreement, including 'Successful Introduction', 'Target Companies', 'Finder's Fee'

4. Appointment and Scope: Formal appointment of the finder and detailed description of services to be provided

5. Finder's Obligations: Specific duties, responsibilities, and standards of performance expected from the finder

6. Company's Obligations: Company's responsibilities, including provision of necessary information and cooperation

7. Fee Structure and Payment Terms: Detailed explanation of fee calculation, payment triggers, and payment process

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

9. Confidentiality: Obligations regarding confidential information and trade secrets

10. Representations and Warranties: Key promises and assertions made by both parties

11. Compliance with Laws: Obligations to comply with relevant laws and regulations, including securities laws

12. General Provisions: Standard boilerplate clauses including governing law, notices, assignment, etc.

What sections are optional to include in a Finders Fee Consulting Agreement?

1. Non-Circumvention: Prevents direct dealings between the company and introduced parties to bypass the finder - include when the finder has established relationships with potential targets

2. Exclusivity: Grants exclusive rights to the finder for specific targets or territories - include when negotiated as part of the commercial terms

3. Intellectual Property: Addresses ownership and usage of IP - include when the finder may develop or use proprietary methods or materials

4. Insurance: Requirements for professional liability insurance - include for high-value transactions or regulated activities

5. Non-Solicitation: Prevents poaching of employees or clients - include when the finder will have significant contact with company personnel or clients

6. Dispute Resolution: Specific procedures for handling disputes - include for high-value agreements or cross-border arrangements

What schedules should be included in a Finders Fee Consulting Agreement?

1. Schedule 1 - Fee Schedule: Detailed breakdown of fee calculations, percentages, and payment structures

2. Schedule 2 - Target Companies/Industries: List of specific companies, industries, or geographical areas covered by the agreement

3. Schedule 3 - Services Description: Detailed scope of services and deliverables

4. Appendix A - Introduction Protocol: Agreed process for making and documenting introductions

5. Appendix B - Reporting Requirements: Templates and timing for activity reports and introduction documentation

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

Jurisdiction

Hong Kong

Cost

Free to use

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