The Finder's Fee Agreement serves as a critical document for businesses and individuals seeking to formalize arrangements for introducing parties to potential business opportunities. This contract type is particularly important in the United States where securities laws and regulations strictly govern intermediary activities. A well-drafted Finder's Fee Agreement helps prevent future disputes by clearly defining what constitutes a successful introduction, establishing compensation terms, and ensuring compliance with applicable regulations. It's essential to carefully structure these agreements to avoid inadvertently requiring broker-dealer registration under federal or state securities laws, while still protecting the finder's right to compensation for legitimate introductory services.
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1. Parties: Identification of the party engaging the finder and the finder, including full legal names and addresses
2. Background: Context of the agreement and brief description of why the parties are entering into it
3. Definitions: Key terms used throughout the agreement, including 'Successful Introduction', 'Target', 'Fee', etc.
4. Scope of Services: Detailed description of what the finder is and is not authorized to do
5. Fee Structure: Details of compensation, including amount, calculation method, and payment timing
6. Payment Terms: Conditions for payment, including what constitutes a qualifying introduction
7. Term and Termination: Duration of the agreement and circumstances for termination
8. Representations and Warranties: Basic promises by both parties, including finder's compliance with laws
1. Exclusivity: Provisions defining whether the finder has exclusive rights to introduce certain targets or clients
2. Regulatory Compliance: Specific regulatory obligations and restrictions applicable to the finder's activities
3. Tail Period: Provisions governing the period after termination during which finder remains entitled to fees
4. Non-Circumvention: Provisions preventing parties from bypassing the finder to avoid paying fees
1. Schedule of Fees: Detailed breakdown of fee calculations and scenarios
2. Target Description: Specific criteria or list of potential targets if applicable
3. Excluded Parties: List of parties excluded from the finder's fee arrangement
4. Required Disclosures: Any mandatory regulatory or legal disclosures required by applicable laws
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