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The Introduction Fee Agreement is a crucial document for businesses operating in South Africa who wish to formalize arrangements where one party is compensated for making valuable business introductions to another. This agreement type is commonly used in various sectors including financial services, real estate, and professional services, where networking and business introductions form a vital part of business development. The document needs to comply with South African legislation, particularly the FAIS Act for financial services-related introductions, POPIA for data protection, and relevant tax laws regarding commission payments. The agreement typically includes detailed definitions of what constitutes a successful introduction, specific fee calculations, payment terms, and duration of the introduction rights, while also addressing confidentiality and non-circumvention provisions to protect the introducer's interests.

1. Parties: Identifies and provides full details of the introducing party and the recipient party

2. Background: Explains the context of the agreement and the parties' intentions regarding the introduction services

3. Definitions: Defines key terms used throughout the agreement, including 'Introduction', 'Introduction Fee', and 'Successful Introduction'

4. Scope of Introduction Services: Details the specific introduction services to be provided and any territorial or industry limitations

5. Introduction Process: Outlines the agreed process for making and documenting introductions

6. Introduction Fee: Specifies the fee structure, calculation method, and payment terms for successful introductions

7. Payment Terms: Details the timing, method, and conditions for payment of introduction fees

8. Obligations of the Parties: Lists the specific duties and responsibilities of both the introducer and the recipient

9. Representations and Warranties: Contains standard warranties about capacity to contract and specific warranties about the introduction services

10. Confidentiality: Governs the treatment of confidential information shared during the introduction process

11. Duration and Termination: Specifies the term of the agreement and circumstances under which it can be terminated

12. General Provisions: Contains standard boilerplate clauses including governing law, notices, and entire agreement