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Commercial Broker Agreement
"I need a Commercial Broker Agreement for our Hong Kong-based import/export company, appointing an exclusive broker to represent us in mainland China for a 3-year term starting January 2025, with a tiered commission structure and strict compliance requirements."
1. Parties: Identification of the principal and the broker, including full legal names, registration details, and addresses
2. Background: Context of the agreement, nature of the principal's business, and purpose of engaging the broker
3. Definitions: Definitions of key terms used throughout the agreement
4. Appointment and Scope: Terms of broker's appointment, territory, and detailed scope of services
5. Broker's Authority: Extent and limitations of broker's authority to act on behalf of the principal
6. Duties and Obligations: Key responsibilities of the broker, including regulatory compliance, reporting requirements, and standard of service
7. Commission Structure: Detailed breakdown of commission calculations, payment terms, and conditions for commission eligibility
8. Term and Termination: Duration of the agreement and circumstances under which it can be terminated
9. Confidentiality: Obligations regarding confidential information and trade secrets
10. Non-Competition and Non-Solicitation: Restrictions on broker's competitive activities during and after the agreement
11. Indemnification: Mutual indemnification provisions and liability limitations
12. General Provisions: Standard boilerplate clauses including governing law, notices, assignment, and entire agreement
1. Exclusivity: Used when the broker is granted exclusive rights for specific territories or transactions
2. Performance Targets: Include when setting specific performance metrics or sales targets for the broker
3. Training and Support: Required when the principal provides specific training or support services to the broker
4. Insurance Requirements: Detailed insurance obligations when dealing with high-value transactions or regulated activities
5. Data Protection: Extended privacy and data protection provisions when handling sensitive customer information
6. Marketing and Branding: Guidelines for using principal's branding when broker is authorized to represent the brand
7. Dispute Resolution: Specific arbitration or mediation procedures for complex international arrangements
1. Schedule 1: Services Description: Detailed description of brokerage services and specific responsibilities
2. Schedule 2: Commission Structure: Detailed commission rates, calculation methods, and examples
3. Schedule 3: Territory: Defined geographical areas or market segments covered by the agreement
4. Schedule 4: Reporting Requirements: Templates and timing for regular reports and performance updates
5. Schedule 5: Compliance Requirements: Specific regulatory requirements and compliance procedures
6. Appendix A: Standard Operating Procedures: Detailed procedures for handling transactions and client interactions
7. Appendix B: Required Forms: Standard forms and documentation required for transactions
Authors
Real Estate
Financial Services
International Trade
Insurance
Commodities
Manufacturing
Import/Export
Technology
Shipping and Logistics
Professional Services
Legal
Compliance
Business Development
Sales
Finance
Operations
Risk Management
Commercial Operations
Partnerships
Contract Administration
Chief Executive Officer
Commercial Director
Business Development Manager
Legal Counsel
Compliance Officer
Contract Manager
Sales Director
Operations Manager
Finance Director
Risk Manager
Business Broker
Channel Manager
Partnership Manager
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