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Finder's Fee Agreement For Investment Capital Template for Canada

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Key Requirements PROMPT example:

Finder's Fee Agreement For Investment Capital

"I need a Finder's Fee Agreement for Investment Capital for my Toronto-based technology startup, offering 5% commission on successfully raised capital with a minimum investment threshold of $500,000, and including strict confidentiality provisions for our proprietary technology."

Document background
The Finder's Fee Agreement For Investment Capital is a crucial document for businesses seeking to raise capital in Canada through intermediaries. It is typically used when a company wishes to engage an individual or entity to help identify and introduce potential investors, while ensuring compliance with Canadian securities regulations. The agreement defines the relationship between the company and the finder, specifying the scope of permitted activities, compensation structure, and compliance requirements. It addresses key regulatory considerations including registration requirements under National Instrument 31-103, disclosure obligations, and provincial securities laws. The document is essential for protecting both parties' interests and ensuring transparent documentation of the arrangement, particularly important given the regulated nature of securities-related activities in Canada.
Suggested Sections

1. Parties: Identification of the Company seeking investment and the Finder, including full legal names and addresses

2. Background: Context of the agreement, including the Company's desire to raise capital and the Finder's ability to introduce potential investors

3. Definitions: Key terms used throughout the agreement, including 'Qualified Investor', 'Investment', 'Success Fee', etc.

4. Appointment and Services: Formal appointment of the Finder and detailed description of services to be provided

5. Regulatory Compliance: Acknowledgments and warranties regarding compliance with securities laws and registration requirements

6. Compensation: Structure and calculation of finder's fees, including timing and conditions for payment

7. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

8. Confidentiality: Obligations regarding confidential information and trade secrets

9. Representations and Warranties: Statements of fact and promises by both parties regarding their capacity and authority

10. Limitation of Liability: Restrictions on the Finder's liability and scope of responsibility

11. General Provisions: Standard clauses including governing law, notices, assignment, and amendments

Optional Sections

1. Exclusivity: Used when the Finder is granted exclusive rights for specific investors or territories

2. Tail Period: Include when fees are to be paid for investments that close after the agreement terminates

3. Sub-Finders: Include when the Finder may engage other parties to assist in providing services

4. International Provisions: Required when the arrangement involves cross-border activities

5. Non-Circumvention: Include to prevent direct dealings between the Company and introduced investors

6. Expense Reimbursement: Used when the Finder may incur reimbursable expenses

7. Non-Solicitation: Include to prevent either party from hiring the other's employees or contractors

Suggested Schedules

1. Schedule A - Fee Structure: Detailed breakdown of fee calculations, tiers, and payment terms

2. Schedule B - Qualified Investor Profile: Criteria and characteristics of acceptable potential investors

3. Schedule C - Reporting Requirements: Format and frequency of activity reports from Finder to Company

4. Schedule D - Excluded Investors: List of investors or categories excluded from the Finder's mandate

5. Schedule E - Required Disclosures: Standard disclosures the Finder must make to potential investors

6. Appendix 1 - Introduction Protocol: Agreed process for making and documenting investor introductions

7. Appendix 2 - Compliance Checklist: Regulatory compliance requirements and verification procedures

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions







































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Relevant Industries

Financial Services

Technology

Real Estate

Manufacturing

Healthcare

Energy

Mining

Agriculture

Professional Services

Consumer Goods

Entertainment

Education

Clean Technology

Biotechnology

Infrastructure

Relevant Teams

Legal

Finance

Corporate Development

Business Development

Compliance

Treasury

Investment Relations

Executive Leadership

Risk Management

Corporate Secretary Office

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Investment Banker

Business Development Manager

Corporate Lawyer

Compliance Officer

Investment Relations Manager

Managing Director

Finance Director

Business Broker

Private Equity Manager

Venture Capital Associate

Corporate Development Manager

Treasury Manager

Financial Consultant

Industries








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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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