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Sourcing Fee Agreement
"I need a Sourcing Fee Agreement for my Indonesian manufacturing company to engage a sourcing agent to find suppliers of electronic components in Southeast Asia, with a success fee structure of 5% for successfully identified suppliers."
1. Parties: Identification of the service provider (sourcing agent) and the client, including their complete legal names, registration numbers, and addresses
2. Background: Context of the agreement, including the client's need for sourcing services and the agent's expertise
3. Definitions: Key terms used throughout the agreement, including 'Sourcing Services', 'Success Fee', 'Target Products/Services', 'Sourcing Period'
4. Scope of Services: Detailed description of the sourcing services to be provided, including specific responsibilities of the sourcing agent
5. Term and Termination: Duration of the agreement and circumstances under which it can be terminated by either party
6. Fee Structure and Payment Terms: Detailed breakdown of fees, including any retainer, success fees, and payment schedules
7. Rights and Obligations: Specific duties and responsibilities of both parties during the sourcing process
8. Confidentiality: Provisions regarding the handling of confidential information exchanged during the sourcing process
9. Exclusivity: Terms regarding whether the sourcing arrangement is exclusive or non-exclusive
10. Representations and Warranties: Standard declarations by both parties regarding their capacity and authority to enter into the agreement
11. Governing Law and Dispute Resolution: Specification of Indonesian law as governing law and method of dispute resolution
12. General Provisions: Standard boilerplate clauses including notices, amendments, and entire agreement provisions
1. Non-Circumvention: Include when there's a risk of the client directly approaching sources identified by the agent, specifying duration and terms of non-circumvention
2. Force Majeure: Include for longer-term sourcing arrangements to address unforeseen circumstances preventing performance
3. Intellectual Property Rights: Include when the sourcing services involve products with significant IP components or when sharing proprietary information
4. Insurance: Include when sourcing high-value items or when required by industry standards
5. Compliance with Laws: Include detailed compliance provisions when dealing with regulated industries or cross-border sourcing
6. Sub-contracting: Include when the sourcing agent may need to engage other parties to fulfill the services
7. Performance Metrics: Include when specific performance standards need to be met by the sourcing agent
1. Schedule A - Scope of Sourcing Services: Detailed breakdown of specific sourcing services, target markets, and deliverables
2. Schedule B - Fee Calculation: Detailed methodology for calculating fees, including examples and scenarios
3. Schedule C - Target Products/Services: Specifications of products or services to be sourced, including quality requirements
4. Schedule D - Approved Sources: List of pre-approved suppliers or sources, if any
5. Schedule E - Reporting Requirements: Format and frequency of progress reports and documentation requirements
6. Appendix 1 - Contact Details: Key contact persons and their details for both parties
7. Appendix 2 - Required Documentation: List of documents required for verification of successful sourcing
Authors
Affiliate
Approved Source
Business Day
Client
Confidential Information
Deliverables
Effective Date
Force Majeure Event
Intellectual Property Rights
Introduction Fee
Key Performance Indicators
Local Requirements
Minimum Order Value
Non-Circumvention Period
Products
Purchase Order
Quality Standards
Retainer Fee
Rupiah
Services
Source
Sourcing Agent
Sourcing Fee
Sourcing Period
Sourcing Process
Sourcing Report
Sourcing Services
Specifications
Success Fee
Target Market
Target Products
Term
Territory
Third Party
Transaction Value
Services Scope
Term and Duration
Fees and Payment
Success Fee
Currency and Payment Method
Expenses
Performance Standards
Reporting Requirements
Client Obligations
Agent Obligations
Exclusivity
Non-Circumvention
Confidentiality
Data Protection
Intellectual Property
Representations and Warranties
Limitation of Liability
Indemnification
Force Majeure
Anti-Corruption
Regulatory Compliance
Local Law Compliance
Insurance
Assignment
Subcontracting
Termination
Consequences of Termination
Dispute Resolution
Governing Law
Notices
Amendment
Severability
Entire Agreement
Counterparts
Language
Relationship of Parties
Manufacturing
Retail
Consumer Goods
Industrial Equipment
Textiles and Apparel
Electronics
Automotive
Agriculture
Mining
Construction Materials
Food and Beverage
Pharmaceuticals
Chemical Industry
Technology Hardware
Renewable Energy
Procurement
Supply Chain
Legal
Finance
Operations
Commercial
Business Development
International Trade
Vendor Management
Contract Management
Compliance
Risk Management
Procurement Manager
Supply Chain Director
Sourcing Specialist
Chief Procurement Officer
Purchasing Manager
Business Development Manager
Operations Director
Commercial Director
Contract Manager
Legal Counsel
Finance Director
Category Manager
Vendor Management Specialist
Strategic Sourcing Manager
International Trade Specialist
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