The Finder Fee Agreement For Sales Leads is essential for businesses operating in Malaysia who wish to expand their customer base through third-party referrals. This document type is commonly used when companies want to incentivize external parties to generate qualified business leads without creating an employment relationship. The agreement provides a clear framework for lead qualification, compensation, and compliance with Malaysian laws, including the Contracts Act 1950 and relevant tax regulations. It protects both the Principal and Finder by clearly defining expectations, payment terms, and responsibilities while ensuring the arrangement complies with local legal requirements and business practices. The document is particularly valuable for businesses looking to grow their sales pipeline through external networks while maintaining legal and regulatory compliance.
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1. Parties: Identifies the parties to the agreement - the Principal (company seeking leads) and the Finder
2. Background: Sets out the context of the agreement, including the Principal's business and desire to engage the Finder for lead generation
3. Definitions: Defines key terms used throughout the agreement, including 'Qualified Lead', 'Successful Transaction', and 'Finder's Fee'
4. Appointment and Scope: Defines the Finder's appointment, territory, and specific services to be provided
5. Finder's Obligations: Details the Finder's responsibilities, including lead qualification criteria and reporting requirements
6. Principal's Obligations: Outlines the Principal's responsibilities, including timely review of leads and communication
7. Compensation: Details the fee structure, calculation method, payment terms, and conditions for fee eligibility
8. Term and Termination: Specifies the agreement duration, renewal terms, and termination rights
9. Confidentiality: Protects confidential information shared during the engagement
10. Independent Contractor Status: Clarifies that the Finder is an independent contractor, not an employee
11. Compliance with Laws: Requires compliance with applicable laws, including anti-corruption and data protection
12. Limitation of Liability: Sets boundaries on parties' liability under the agreement
13. General Provisions: Standard clauses including notices, amendments, governing law, and dispute resolution
1. Non-Compete: Restricts the Finder from working with competitors - include when protecting market position is crucial
2. Non-Solicitation: Prevents poaching of employees or clients - relevant for high-value or sensitive industries
3. Intellectual Property: Addresses ownership of materials created during lead generation - include when marketing materials or custom content is involved
4. Insurance: Requires the Finder to maintain specific insurance coverage - important for high-risk industries
5. Data Protection: Detailed data handling requirements - essential when dealing with personal data of leads
6. Training and Support: Outlines any training or support provided by the Principal - include when complex products/services are involved
7. Audit Rights: Allows Principal to audit Finder's activities - important for regulated industries or high-value agreements
1. Schedule 1 - Fee Structure: Detailed breakdown of fee calculations, tiers, and specific conditions for different types of leads
2. Schedule 2 - Lead Qualification Criteria: Specific criteria that define a qualified lead and documentation requirements
3. Schedule 3 - Reporting Requirements: Templates and specifications for lead reporting and tracking
4. Schedule 4 - Restricted Competitors: List of competitors (if non-compete is included)
5. Schedule 5 - Compliance Requirements: Specific regulatory or industry compliance requirements
6. Appendix A - Lead Submission Form: Standard form for submitting lead information
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