The Broker Non-Circumvention Agreement is essential in protecting intermediaries' legitimate business interests in the United States market. This document is typically used when a broker introduces valuable business opportunities, contacts, or deals to clients, and needs to ensure they will be compensated for their services. It prevents parties from circumventing the broker to avoid paying commissions or fees. The agreement includes specific provisions about confidentiality, term duration, geographical scope, and compensation structures. It's particularly important in industries where relationship-building and introductions are crucial to business success.
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1. Parties: Identification of all parties involved in the agreement, including full legal names and addresses
2. Background/Recitals: Context of the agreement and the business relationship between parties
3. Definitions: Key terms used throughout the agreement, including 'Confidential Information', 'Transaction', 'Commission', etc.
4. Scope of Non-Circumvention: Core obligations regarding not bypassing the broker or dealing directly with introduced parties
5. Term and Duration: Period during which the agreement remains in effect
6. Compensation Terms: Details of broker fees and commission structures
7. Confidentiality Obligations: Requirements for handling confidential information
1. Territory Restrictions: Geographic limitations of the agreement - used when dealing with specific geographic markets or territories
2. Non-Solicitation: Prevents parties from soliciting each other's employees or clients - used when protecting broader business interests beyond just circumvention
3. Specific Transaction Details: Details of particular deals or opportunities - used when the agreement relates to specific known transactions
1. Schedule of Protected Parties: List of contacts, clients, or opportunities protected under the agreement
2. Commission Schedule: Detailed breakdown of commission structures and payment terms
3. Transaction Pipeline: List of current or pending transactions covered by the agreement
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