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Sourcing Fee Agreement
"I need a Sourcing Fee Agreement for my IT consulting company based in Bangalore, acting as a sourcing agent for international clients, with a combined success fee and monthly retainer structure, and specific provisions for cross-border payments."
1. Parties: Identifies and provides full details of all parties to the agreement
2. Background: Provides context and purpose of the agreement, including the business relationship between parties
3. Definitions: Defines key terms used throughout the agreement for clarity and consistency
4. Scope of Services: Details the specific sourcing services to be provided, including deliverables and expectations
5. Fee Structure: Specifies the fees, calculation methodology, and any success-based components
6. Payment Terms: Outlines payment schedule, method, currency, and any conditions for payment
7. Term and Termination: Specifies duration of agreement and circumstances under which it can be terminated
8. Obligations of Parties: Lists specific responsibilities and obligations of each party
9. Confidentiality: Provisions for protecting confidential information shared during the sourcing process
10. Representations and Warranties: Standard warranties about capacity to contract and service quality
11. Indemnification: Mutual indemnification provisions for breach of agreement or negligence
12. Governing Law and Jurisdiction: Specifies applicable law and jurisdiction for dispute resolution
13. Notices: Details how formal communications between parties should be made
14. Execution: Signature blocks and execution formalities
1. Exclusivity: Used when the sourcing arrangement is exclusive in nature, preventing engagement with other service providers
2. Performance Metrics: Include when specific KPIs or performance standards need to be met
3. Force Majeure: Added when parties want specific provisions for unforeseeable circumstances
4. Non-Solicitation: Include when parties want to prevent poaching of employees or clients
5. Insurance: Required when specific insurance coverage needs to be maintained
6. Compliance with Laws: Added when specific regulatory compliance needs to be emphasized
7. Intellectual Property Rights: Include when IP might be created or shared during the sourcing process
8. Assignment and Subcontracting: Used when transfer of rights or subcontracting needs to be specifically addressed
1. Schedule A - Service Description: Detailed description of sourcing services and methodologies
2. Schedule B - Fee Calculation: Detailed breakdown of fee structure, including examples if needed
3. Schedule C - Key Personnel: List of key team members responsible for service delivery
4. Schedule D - Service Levels: Specific performance metrics and service level requirements
5. Schedule E - Compliance Requirements: Specific regulatory or compliance requirements applicable to the services
6. Appendix 1 - Contact Details: Contact information for key representatives of each party
7. Appendix 2 - Reporting Format: Templates and formats for required reports and updates
Authors
Manufacturing
Retail
Information Technology
Consumer Goods
Industrial Products
Automotive
Electronics
Textiles
Pharmaceuticals
Construction
Energy
Telecommunications
Procurement
Legal
Finance
Operations
Supply Chain
Commercial
Vendor Management
Strategic Sourcing
Business Development
Risk Management
Compliance
Procurement Manager
Sourcing Manager
Supply Chain Director
Chief Procurement Officer
Legal Counsel
Contract Manager
Finance Director
Commercial Director
Business Development Manager
Operations Manager
Vendor Management Specialist
Category Manager
Strategic Sourcing Specialist
Chief Financial Officer
General Counsel
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