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Sourcing Fee Agreement for the United States

Sourcing Fee Agreement Template for United States

A Sourcing Fee Agreement is a legally binding contract used in the United States that establishes the terms and conditions under which a sourcing agent or company will provide procurement services for a client. The agreement outlines the scope of services, fee structure, payment terms, and performance expectations, while ensuring compliance with U.S. federal and state regulations governing commercial relationships and fee arrangements.

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What is a Sourcing Fee Agreement?

The Sourcing Fee Agreement serves as a critical document for businesses seeking to establish clear parameters for procurement relationships. This contract type is particularly relevant in today's global supply chain environment, where companies increasingly rely on specialized sourcing agents to identify and secure suppliers, materials, or products. Under U.S. jurisdiction, this agreement helps protect both parties by clearly defining service scope, compensation structures, and compliance requirements while addressing key aspects such as exclusivity, performance metrics, and territorial rights.

What sections should be included in a Sourcing Fee Agreement?

1. Parties: Identification of all parties involved in the agreement, including legal names and addresses

2. Background: Context of the agreement and relationship between parties

3. Definitions: Key terms used throughout the agreement

4. Services: Detailed description of sourcing services to be provided

5. Fee Structure: Details of fees, calculation methods, and payment terms

6. Term and Termination: Duration of agreement and conditions for termination

7. Confidentiality: Protection of confidential information exchanged during the engagement

What sections are optional to include in a Sourcing Fee Agreement?

1. Exclusivity: Terms defining exclusive rights for the sourcing agent in specific territories or for specific products

2. Performance Metrics: Specific KPIs and performance standards for performance-based compensation arrangements

3. International Provisions: Specific provisions for cross-border considerations and requirements in international transactions

What schedules should be included in a Sourcing Fee Agreement?

1. Schedule A - Fee Calculation: Detailed breakdown of fee structure and calculation methods

2. Schedule B - Territory Definition: Specification of geographical areas covered by the agreement

3. Schedule C - Product/Service Specifications: Detailed description of products/services to be sourced

4. Schedule D - Performance Metrics: Detailed KPIs and measurement methodology for performance evaluation

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 | Serial Founder & Legal AI Author

Jurisdiction

United States

Document Type

Fee Agreement

Cost

Free to use
Clauses


























Industries

Securities Exchange Act 1934: Federal law governing securities trading and broker-dealer activities, relevant if the sourcing involves securities transactions

Investment Advisers Act 1940: Federal regulation of investment advisers and their activities, applicable if the sourcing involves investment advisory services

Foreign Corrupt Practices Act: Anti-bribery legislation crucial for international sourcing activities and cross-border transactions

Anti-Kickback Statute: Federal law prohibiting improper payment arrangements, particularly important in healthcare-related sourcing

State Contract Laws: Various state-specific regulations governing contract formation, enforcement, and interpretation

State Licensing Requirements: State-specific regulations for broker/agent licensing and business operations

State Finder's Fee Regulations: State-level rules governing finder's fee arrangements and compensation structures

Blue Sky Laws: State securities laws regulating the offering and sale of securities to protect investors

Uniform Commercial Code: Standardized commercial laws adopted by states governing business transactions

Internal Revenue Code: Federal tax regulations regarding the characterization and reporting of sourcing fees

Form 1099 Requirements: IRS reporting requirements for independent contractor payments and service fees

Industry Licensing Requirements: Specific licensing and certification requirements based on the industry sector

Federal Trade Commission Regulations: Federal consumer protection and fair business practice requirements

State Consumer Protection Laws: State-specific regulations protecting consumers and businesses in commercial transactions

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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