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Split Fee Agreement for Indonesia

Split Fee Agreement Template for Indonesia

A comprehensive agreement governed by Indonesian law that establishes the terms and conditions for sharing fees between two or more parties. The document outlines the specific fee-splitting arrangements, calculation methodologies, payment terms, and reporting requirements while ensuring compliance with Indonesian financial regulations and civil code requirements. It includes provisions for dispute resolution, confidentiality, and termination rights, adapted to the Indonesian legal framework and business practices.

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What is a Split Fee Agreement?

The Split Fee Agreement is essential for businesses and professionals operating in Indonesia who wish to formalize fee-sharing arrangements for joint ventures, referrals, or collaborative services. This document type is commonly used when parties agree to share revenue or fees generated from specific business activities, ensuring transparency and legal compliance in the Indonesian market. It addresses key aspects such as fee calculation methods, payment schedules, reporting obligations, and dispute resolution mechanisms, while adhering to Indonesian financial regulations and civil law requirements. The agreement is particularly important given Indonesia's complex regulatory environment and the need for clear documentation of financial arrangements between parties.

What sections should be included in a Split Fee Agreement?

1. Parties: Identifies and provides full details of all parties entering into the agreement

2. Background: Explains the context and purpose of the fee-sharing arrangement

3. Definitions: Defines key terms used throughout the agreement

4. Scope of Agreement: Outlines the specific activities or services covered by the fee-sharing arrangement

5. Fee Structure: Details the agreed-upon split fee percentages or ratios

6. Payment Terms: Specifies payment timing, method, and currency

7. Calculation Method: Explains how fees will be calculated and verified

8. Reporting Requirements: Outlines the requirements for financial reporting and documentation

9. Confidentiality: Establishes confidentiality obligations regarding the agreement and related information

10. Term and Termination: Specifies the duration of the agreement and termination conditions

11. Governing Law: Confirms Indonesian law as governing law and relevant jurisdictional details

12. Dispute Resolution: Outlines the process for resolving any disputes between parties

What sections are optional to include in a Split Fee Agreement?

1. Non-Compete: Includes restrictions on competing activities, used when parties operate in the same industry

2. Additional Services: Describes any additional services provided by either party, used when the arrangement extends beyond basic fee sharing

3. Insurance Requirements: Specifies required insurance coverage, used when activities involve significant risks

4. Intellectual Property: Addresses IP rights and usage, used when shared activities involve intellectual property

5. Force Majeure: Covers unforeseeable circumstances preventing performance, used in longer-term arrangements

6. Assignment Rights: Specifies whether parties can assign their rights, used in complex business relationships

7. Audit Rights: Grants rights to audit financial records, used in high-value arrangements

What schedules should be included in a Split Fee Agreement?

1. Schedule A - Fee Calculation Matrix: Detailed breakdown of how fees are calculated for different types of transactions or services

2. Schedule B - Payment Procedures: Step-by-step process for fee calculations, invoicing, and payment

3. Schedule C - Reporting Template: Standard format for regular financial reporting between parties

4. Schedule D - Authorized Representatives: List of authorized persons who can act on behalf of each party

5. Appendix 1 - Service Level Agreement: Details of service standards if applicable to the fee-sharing arrangement

6. Appendix 2 - Compliance Requirements: Specific regulatory and compliance requirements under Indonesian law

Authors

Alex Denne

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

Jurisdiction

Indonesia

Publisher

Ƶ

Document Type

Fee Agreement

Cost

Free to use
Relevant legal definitions

























Clauses
































Relevant Industries

Professional Services

Real Estate

Financial Services

Consulting

Legal Services

Recruitment

Investment Banking

Business Advisory

Insurance

Property Development

Relevant Teams

Legal

Finance

Business Development

Compliance

Operations

Commercial

Partnerships

Revenue Management

Contract Administration

Risk Management

Relevant Roles

Business Development Manager

Finance Director

Legal Counsel

Managing Partner

Commercial Director

Chief Financial Officer

Compliance Officer

Operations Manager

Business Partner

Contract Manager

Revenue Manager

Partnership Director

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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