The Referral Fee Agreement is essential for businesses operating in Hong Kong that wish to formalize their referral arrangements and ensure compliance with local regulations. This document is typically used when one party agrees to refer potential clients or business opportunities to another party in exchange for compensation. It includes detailed provisions for the referral process, fee calculations, payment terms, and regulatory compliance, particularly with Hong Kong's Prevention of Bribery Ordinance and data privacy laws. The agreement is crucial for protecting both parties' interests, ensuring transparency in referral relationships, and maintaining regulatory compliance while establishing clear performance metrics and payment mechanisms.
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1. Parties: Identification of the referrer and the company/individual receiving referrals
2. Background: Context of the agreement and brief description of the business relationship
3. Definitions: Key terms used throughout the agreement including 'Referral', 'Referral Fee', 'Successful Referral'
4. Appointment and Scope: Terms of appointment and scope of referral services
5. Referral Process: Detailed procedure for making and accepting referrals
6. Referral Fees and Payment Terms: Fee structure, calculation method, payment timing and conditions
7. Obligations of the Referrer: Duties and responsibilities of the referring party
8. Obligations of the Company: Duties and responsibilities of the party receiving referrals
9. Compliance and Regulatory Requirements: Compliance with Hong Kong laws including anti-bribery and industry regulations
10. Confidentiality: Confidentiality obligations regarding business information and referral details
11. Data Protection: Compliance with PDPO and data handling requirements
12. Term and Termination: Duration of agreement and termination provisions
13. General Provisions: Standard boilerplate clauses including governing law, notices, entire agreement
1. Non-Compete: Restrictions on referrer's ability to refer to competitors - include when exclusivity is required
2. Marketing and Promotion: Guidelines for marketing the referral relationship - include when referrer will actively promote services
3. Training and Support: Details of any training or support provided - include when complex products/services are involved
4. Insurance: Insurance requirements - include when referrals involve regulated activities or high-risk services
5. Audit Rights: Right to audit referral records - include for high-value or volume-based arrangements
6. Service Levels: Performance metrics and standards - include when specific service levels are crucial
7. Dispute Resolution: Detailed dispute resolution procedures - include for high-value arrangements
1. Schedule 1 - Fee Structure: Detailed breakdown of referral fees, commission tiers, and calculation methods
2. Schedule 2 - Referral Process Flow: Step-by-step process flow for referrals including timeframes and documentation
3. Schedule 3 - Approved Marketing Materials: Templates and guidelines for marketing and promotional materials
4. Schedule 4 - Compliance Requirements: Detailed compliance procedures and regulatory requirements
5. Schedule 5 - Data Processing Requirements: Specific data handling and protection procedures
6. Appendix A - Referral Report Template: Standard format for reporting referrals and tracking commissions
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