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Finder's Fee Agreement For Investment Capital for the Netherlands

Finder's Fee Agreement For Investment Capital Template for Netherlands

A comprehensive agreement governed by Dutch law that establishes the terms and conditions under which a finder will assist in securing investment capital for a company. The document outlines the scope of services, success fee structure, regulatory compliance requirements under the Dutch Financial Supervision Act (Wft), and payment terms. It includes provisions for confidentiality, representations and warranties, and dispute resolution mechanisms, while ensuring compliance with Dutch financial regulations and EU data protection requirements. The agreement balances the interests of both the company seeking investment and the finder while maintaining alignment with Dutch legal frameworks for financial intermediary services.

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What is a Finder's Fee Agreement For Investment Capital?

The Finder's Fee Agreement For Investment Capital is a crucial document for companies seeking to raise capital through professional intermediaries in the Netherlands. This agreement is particularly relevant in today's competitive funding environment where businesses increasingly rely on professional networks to secure investment. It addresses key aspects such as commission structures, regulatory compliance (particularly with the Dutch Financial Supervision Act), and the scope of permitted intermediary activities. The document becomes necessary when a company wishes to formally engage a finder to introduce potential investors, ensuring clear terms for compensation and protecting both parties' interests. It includes specific provisions required under Dutch law for financial intermediary services, defines the qualification criteria for successful introductions, and establishes clear parameters for fee entitlement. This agreement is especially important given the regulated nature of financial intermediary services in the Netherlands and the need for compliance with both national and EU regulations.

What sections should be included in a Finder's Fee Agreement For Investment Capital?

1. Parties: Identification of the principal (company seeking investment) and the finder, including full legal names, addresses, and registration details

2. Background: Context of the agreement, including the principal's funding needs and the finder's expertise

3. Definitions: Key terms including 'Qualified Investor', 'Investment', 'Success Fee', 'Introduction', and other relevant terminology

4. Scope of Services: Detailed description of the finder's services, including introduction methods and permitted activities

5. Regulatory Compliance: Acknowledgment of and compliance with Dutch financial regulations, including Wft requirements

6. Exclusivity and Territory: Whether the arrangement is exclusive and the geographic scope of the finder's activities

7. Fee Structure: Detailed explanation of success fees, calculation methods, and qualifying investments

8. Payment Terms: Timing and method of payment, including any conditions precedent

9. Term and Termination: Duration of the agreement and circumstances for termination

10. Confidentiality: Protection of confidential information and trade secrets

11. Representations and Warranties: Standard declarations by both parties regarding capacity, authority, and compliance

12. Limitation of Liability: Caps on liability and exclusions of certain types of damages

13. Governing Law and Jurisdiction: Specification of Dutch law and competent courts

What sections are optional to include in a Finder's Fee Agreement For Investment Capital?

1. Non-Circumvention: Used when there's a risk of direct dealings between the principal and introduced investors, bypassing the finder

2. Tail Period: Include when fees should continue after agreement termination for previously introduced investors

3. Alternative Fee Arrangements: Used when including provisions for retainers or alternative success fee structures

4. Sub-Agents: Include when the finder may need to work with other agents or sub-contractors

5. Intellectual Property: Required when sharing of branded materials or proprietary information is involved

6. Force Majeure: Include for longer-term arrangements where external events might affect performance

7. Data Protection: Detailed GDPR compliance section when significant personal data processing is involved

8. Anti-Money Laundering: Enhanced AML provisions when dealing with high-risk jurisdictions or complex structures

What schedules should be included in a Finder's Fee Agreement For Investment Capital?

1. Fee Schedule: Detailed breakdown of fee structures, tiers, and calculation examples

2. Required Information Template: Template specifying the information needed from the finder about potential investors

3. Compliance Checklist: List of regulatory requirements and compliance steps for both parties

4. Approved Introduction Script: Standard language for making introductions to ensure regulatory compliance

5. Investor Profile Requirements: Criteria for qualified investors and required documentation

6. Reporting Template: Standard format for regular reporting of finder's activities and introductions

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Netherlands

Publisher

Genie AI

Cost

Free to use

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