The Finder's Fee Commission Agreement is essential when businesses seek to formalize arrangements with individuals or entities who can identify and introduce valuable business opportunities. This document, structured under U.S. law, defines the finder's role, compensation structure, and compliance requirements while protecting both parties' interests. It's particularly important to distinguish the finder's limited role from that of a broker-dealer to ensure regulatory compliance. The agreement typically includes specific performance metrics, payment conditions, and duration terms while addressing relevant federal and state regulatory requirements.
Finder's Fee Commission Agreement for the United States
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Key Requirements PROMPT example:
Finder's Fee Commission Agreement
"I need a Finder's Fee Commission Agreement for our tech startup to engage independent consultants who will introduce potential investors, offering a 5% commission on successfully raised capital with a 12-month tail period starting March 2025."
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1. Parties: Identification of the parties entering into the agreement, including full legal names and addresses
2. Background/Recitals: Context of the agreement and relationship between parties
3. Definitions: Key terms used throughout the agreement
4. Scope of Services: Detailed description of finder's duties and limitations
5. Commission Structure: Details of fee calculation, payment terms, and conditions for earning commission
6. Payment Terms: Timeline and method of payment, including any conditions precedent
7. Term and Termination: Duration of agreement and circumstances for termination
8. Representations and Warranties: Basic assurances from both parties regarding authority and compliance
1. Exclusivity: Terms defining whether the finder has exclusive or non-exclusive rights to introduce potential clients
2. Tail Period: Provisions for commission eligibility after agreement termination for introductions made during the term
3. Regulatory Compliance: Specific compliance requirements and obligations under applicable securities and business laws
4. Dispute Resolution: Procedures for resolving disputes through arbitration or mediation
1. Commission Schedule: Detailed breakdown of commission rates, tiers, and calculation methods
2. Target Client List: List of potential clients or industries that fall within the scope of the agreement
3. Compliance Requirements: Detailed regulatory requirements and compliance procedures
4. Form of Introduction Letter: Template for formal introductions to potential clients
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