The Intermediary Commission Agreement is essential for businesses operating in Hong Kong that engage third parties to facilitate sales, business development, or customer acquisition. This document is particularly relevant in today's interconnected business environment where companies increasingly rely on external partners to expand their market reach. The agreement must comply with Hong Kong's legal framework, including the Contract Ordinance, Prevention of Bribery Ordinance, and relevant regulatory requirements. It typically covers commission calculations, payment terms, performance standards, compliance obligations, and risk allocation between parties. The document is crucial for protecting both the principal's and intermediary's interests while ensuring transparency and enforceability of the commission arrangement.
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1. Parties: Identification of the principal and intermediary, including full legal names and registered addresses
2. Background: Context of the agreement, business relationship, and purpose of the intermediary arrangement
3. Definitions: Key terms used throughout the agreement, including 'Services', 'Commission', 'Territory', and 'Customers'
4. Appointment and Scope: Terms of intermediary appointment, exclusivity/non-exclusivity, and detailed scope of services
5. Commission Structure: Detailed commission calculation methodology, rates, and any variations
6. Payment Terms: Commission payment timing, method, currency, and documentation requirements
7. Obligations of the Intermediary: Intermediary's duties, performance standards, and compliance requirements
8. Obligations of the Principal: Principal's responsibilities, support to be provided, and information sharing requirements
9. Representations and Warranties: Standard warranties regarding capacity, authority, and compliance with laws
10. Compliance: Anti-bribery, anti-corruption, and regulatory compliance obligations
11. Confidentiality: Protection of confidential information and trade secrets
12. Term and Termination: Duration of agreement, renewal terms, and termination rights
13. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law
1. Non-Competition: Restrictions on intermediary's activities with competitors, used when protecting market position is crucial
2. Intellectual Property: IP ownership and usage rights, included when brand materials or proprietary information is shared
3. Data Protection: Specific data handling obligations, required when personal data processing is involved
4. Insurance: Insurance requirements for intermediary, included for high-value or high-risk arrangements
5. Audit Rights: Principal's right to audit intermediary's records, useful for complex commission structures
6. Performance Targets: Specific KPIs and consequences of non-achievement, used in performance-based arrangements
7. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in international arrangements
8. Dispute Resolution: Specific dispute resolution procedures, important for international arrangements or high-value contracts
1. Commission Rates Schedule: Detailed breakdown of commission rates, tiers, and calculation examples
2. Service Level Requirements: Specific performance metrics and service standards
3. Territory Definition: Detailed description of geographical or customer segment coverage
4. Reporting Ƶ: Standard forms for commission calculations and activity reporting
5. Compliance Procedures: Detailed procedures for regulatory compliance and anti-corruption measures
6. Product/Service List: List of products or services covered by the agreement with relevant commission rates
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