The Referral Finder's Fee Agreement is essential when businesses seek to formalize relationships with individuals or entities who can generate leads or introductions. This document is particularly important in the United States where various federal and state regulations govern referral arrangements. The agreement typically specifies the nature of referrals, qualification criteria, fee calculations, payment timing, and compliance requirements. It helps prevent misunderstandings and potential disputes while ensuring adherence to applicable laws and regulations.
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1. Parties: Identification of the parties entering into the agreement
2. Background: Context and purpose of the agreement
3. Definitions: Key terms used throughout the agreement including 'Referral', 'Finder's Fee', and 'Successful Transaction'
4. Scope of Services: Description of referral services to be provided and any limitations
5. Fee Structure: Amount and calculation method of finder's fees, including triggers for payment
6. Payment Terms: Timing and method of fee payments, including any conditions precedent
7. Term and Termination: Duration of the agreement and conditions for termination
8. Representations and Warranties: Legal assurances from both parties regarding authority, compliance, and capabilities
9. Governing Law: Specification of applicable law and jurisdiction
1. Exclusivity: Terms establishing whether the finder has exclusive rights for referrals
2. International Provisions: Specific terms for cross-border referrals and compliance with international laws
3. Non-Solicitation: Restrictions on soliciting referred clients or employees
4. Regulatory Compliance: Industry-specific compliance requirements and procedures
5. Indemnification: Terms for mutual or one-way indemnification against claims
1. Schedule A - Fee Schedule: Detailed breakdown of fee calculations and examples
2. Schedule B - Referral Process: Step-by-step procedure for making and tracking referrals
3. Schedule C - Compliance Requirements: Specific compliance obligations and procedures based on industry
4. Schedule D - Approved Territories: List of geographical areas where finder is authorized to operate
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