Finder's Fee Agreement For Raising Capital Template for Australia

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Key Requirements PROMPT example:

Finder's Fee Agreement For Raising Capital

"I need a Finder's Fee Agreement For Raising Capital for my Australian technology startup, targeting a capital raise of $5 million, with a tiered fee structure starting at 2% and increasing to 5% for larger investments, and including specific provisions for cryptocurrency investors."

Document background
The Finder's Fee Agreement For Raising Capital is essential for businesses seeking to formalize arrangements with intermediaries who assist in securing investment capital. This document is particularly relevant in the Australian market where capital raising activities are strictly regulated under the Corporations Act 2001 and ASIC guidelines. It establishes clear parameters for the finder's role, including specific activities permitted, compensation structures, and compliance requirements. The agreement protects both parties by clearly defining successful introductions, fee calculations, payment conditions, and regulatory obligations. It's commonly used when companies engage professional intermediaries to access investor networks while ensuring compliance with Australian financial services laws.
Suggested Sections

1. Parties: Identification of the company seeking capital and the finder, including full legal names, ACN/ABN, and registered addresses

2. Background: Context of the agreement, including the company's capital raising objectives and the finder's role

3. Definitions: Key terms used in the agreement, including 'Successful Introduction', 'Qualified Investor', 'Investment Amount', and 'Finder's Fee'

4. Appointment and Scope: Terms of the finder's appointment, scope of services, and any territorial or exclusivity provisions

5. Finder's Services: Detailed description of services to be provided, including introduction methods and any restrictions

6. Company's Obligations: Company's responsibilities, including providing necessary information and cooperating with the finder

7. Fee Structure: Detailed explanation of fee calculation, payment timing, and conditions for fee 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. Compliance with Laws: Obligations to comply with relevant financial services laws and regulations

11. Representations and Warranties: Key assurances from both parties, including licensing and capacity to perform

12. General Provisions: Standard legal provisions including governing law, notices, and assignment

Optional Sections

1. Non-Circumvention: Prevents direct dealings between the company and introduced parties to avoid fee payment, used when there's significant risk of circumvention

2. Tail Period: Defines period after termination during which finder remains entitled to fees, used in longer-term arrangements

3. Minimum Investment Requirements: Specifies minimum investment amounts for fee eligibility, used when targeting specific investor sizes

4. Multiple Finder Coordination: Procedures for coordinating with other finders, used when multiple finders may be engaged

5. International Provisions: Additional provisions for cross-border introductions, used when dealing with international investors

6. Success Fee Alternatives: Alternative fee structures such as equity compensation, used when cash compensation isn't preferred

7. Dispute Resolution: Specific dispute resolution procedures, used for high-value or complex arrangements

Suggested Schedules

1. Schedule 1 - Fee Schedule: Detailed breakdown of fee structures, including percentages, tiers, and calculation methods

2. Schedule 2 - Qualified Investor Criteria: Specific criteria defining eligible investors for fee purposes

3. Schedule 3 - Reporting Requirements: Format and timing of reports regarding introductions and outcomes

4. Schedule 4 - Excluded Parties: List of investors or entities excluded from the finder's fee arrangement

5. Appendix A - Introduction Protocol: Detailed procedures for making and documenting introductions

6. Appendix B - Compliance Checklist: Required compliance steps and documentation for both parties

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 | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Financial Services

Investment Banking

Private Equity

Venture Capital

Professional Services

Technology

Real Estate

Mining and Resources

Healthcare

Manufacturing

Retail

Energy

Infrastructure

Biotechnology

Agriculture

Relevant Teams

Legal

Finance

Corporate Development

Business Development

Compliance

Treasury

Investment Relations

Corporate Advisory

Risk Management

Executive Leadership

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Investment Manager

Business Development Manager

Corporate Finance Manager

Legal Counsel

Compliance Officer

Finance Director

Managing Director

Company Secretary

Investment Banker

Corporate Advisor

Business Broker

Venture Capital Manager

Private Equity Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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