A Sourcing Fee Agreement is essential when engaging professional sourcing services in international trade and procurement. This agreement, governed by English and Welsh law, establishes the commercial relationship between sourcing agents and their clients, detailing compensation structures, performance metrics, and service scope. It's particularly crucial for protecting both parties' interests in cross-border transactions and ensuring clarity on commission structures, exclusivity arrangements, and success fees. The document typically includes specific provisions for different sourcing scenarios, payment triggers, and dispute resolution mechanisms.
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1. Parties: Identification and details of the contracting parties
2. Background: Context and purpose of the agreement
3. Definitions: Key terms used throughout the agreement
4. Scope of Services: Details of the sourcing services to be provided
5. Fee Structure: Calculation and payment terms of sourcing fees
6. Payment Terms: Timing and method of payment
7. Term and Termination: Duration and termination provisions
8. Confidentiality: Obligations regarding confidential information
9. Representations and Warranties: Standard representations and warranties by both parties
10. Governing Law and Jurisdiction: Specification of English and Welsh law as governing law and jurisdiction
1. Exclusivity: Terms of exclusive arrangements between parties
2. Success Fee: Additional fees based on successful outcomes and performance metrics
3. Non-Circumvention: Prevention of direct dealings bypassing the sourcing agent
4. Force Majeure: Provisions for unforeseen circumstances preventing performance
5. Data Protection: Compliance with UK GDPR and Data Protection Act 2018
1. Fee Schedule: Detailed breakdown of fee calculations and rates
2. Service Level Agreement: Specific performance metrics and standards
3. Target Markets/Products: List of specific markets or products covered by the agreement
4. Reporting Requirements: Format and frequency of required reports
5. Key Personnel: List of key personnel involved in providing the sourcing services
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