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Finder's Fee Agreement For Raising Capital
"I need a Finder's Fee Agreement For Raising Capital for my Hong Kong technology startup, with a 5% success fee structure and exclusive rights for the finder in the Asia-Pacific region, to be effective from March 2025."
1. Parties: Identifies and defines the parties to the agreement - typically the Company seeking capital and the Finder
2. Background: Explains the context of the agreement, including the Company's intention to raise capital and the Finder's ability to introduce potential investors
3. Definitions: Defines key terms used throughout the agreement, including 'Successful Introduction', 'Qualified Investor', and 'Investment'
4. Appointment and Scope of Services: Defines the Finder's appointment, specifying that the role is limited to introductions only and explicitly stating what activities are not included
5. Term and Termination: Specifies the duration of the agreement and circumstances under which it can be terminated
6. Finder's Fee Structure: Details the fee calculation method, timing of payments, and conditions for fee entitlement
7. Payment Terms: Specifies payment mechanics, timing, and any conditions precedent to payment
8. Representations and Warranties: Key statements from both parties about their capacity, authority, and compliance with laws
9. Regulatory Compliance: Acknowledges relevant regulatory requirements and confirms compliance
10. Confidentiality: Obligations regarding confidential information exchanged during the engagement
11. General Provisions: Standard clauses including governing law, notices, entire agreement, and amendment procedures
1. Exclusivity: Used when the Company wants to grant exclusive rights to the Finder for specific investors or territories
2. Tail Period: Defines a period after termination during which the Finder remains entitled to fees for successful investments
3. Indemnification: Additional protection for either party against specific risks or claims
4. Non-Circumvention: Prevents direct dealings between the Company and introduced investors to avoid fee payment
5. Force Majeure: Added when parties want specific provisions for handling unforeseen circumstances
6. Dispute Resolution: Optional detailed procedures for handling disputes, such as mandatory mediation before litigation
1. Schedule 1 - Fee Calculation Examples: Provides detailed examples of how fees will be calculated in various scenarios
2. Schedule 2 - Excluded Investors: Lists any investors or categories of investors explicitly excluded from the agreement
3. Schedule 3 - Required Information for Introductions: Specifies the minimum information the Finder must provide about potential investors
4. Schedule 4 - Compliance Requirements: Details specific regulatory compliance requirements and procedures
5. Appendix A - Introduction Notice Template: Standard form for documenting formal introductions of potential investors
6. Appendix B - Success Fee Notice Template: Standard form for claiming success fees when an investment is completed
Authors
Financial Services
Technology
Real Estate
Manufacturing
Healthcare
Retail
E-commerce
Professional Services
Media & Entertainment
Biotechnology
Clean Energy
Infrastructure
Education
Food & Beverage
Legal
Finance
Corporate Development
Investment Relations
Business Development
Compliance
Corporate Secretariat
Executive Management
Chief Executive Officer
Chief Financial Officer
Investment Relations Manager
Business Development Director
Corporate Finance Manager
Legal Counsel
Company Secretary
Financial Controller
Investment Manager
Corporate Development Manager
Fundraising Manager
Managing Director
Finance Director
Compliance Officer
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