Business Development Fee Clause Samples

Business Development Fee. In the case of any business development transaction by the Client, including but not limited to a sales contract, joint venture, distribution agreement, licensing agreement, or other similar business development transaction consummated by the Client or its subsidiaries within two (2) years from the termination of this Agreement, with a party that was introduced to Client by Financial Adviser during the term of this Agreement, the Client shall pay to the Adviser a mutually agreed-upon fee of what is commercially customary for a Business Development Fee. This fee shall not apply to any party identified by the Client on a schedule to be provided contemporaneously to Financial Adviser with execution of this Agreement. The “Business Development Fee” may be comprised of some of the following fees: a. A Finder’s Fee equal to __5%___ of the total gross funding provided by any equity purchaser payable to Client that is the result of the introduction and consummation of a transaction between the Client and a company, not already having a preexisting relationship with the Client, introduced by the Financial Advisers to the Client. Company agrees that said fee will be paid in full within five (5) days of the close of the transaction. b. A Placement Fee equal to ___10___ % of Placement Consideration (as defined below) payable in connection with the Private Placement at the closing, and/or any follow-on closings. c. A Partnership Transaction Fee equal to ___5___% of Designated Consideration (as defined below) payable in connection with a Transaction at the closing of the definitive agreements for each phase thereof, provided that compensation attributable to that part of Designated Consideration which is contingent upon the realization of future financial, product, regulatory, business or other specific performance shall be paid by the Client to Financial Adviser promptly upon the receipt of such Designated Consideration;