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Success Fee Agreement Template for Nigeria

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Key Requirements PROMPT example:

Success Fee Agreement

"I need a Success Fee Agreement for my management consulting firm based in Lagos, providing strategic advisory services to a manufacturing company, with a success fee of 5% of cost savings achieved by March 2025."

Document background
Success Fee Agreements are widely used in Nigerian business practice to align service provider incentives with client objectives through performance-based compensation. These agreements are particularly relevant in professional services, corporate transactions, and project development where outcomes can be clearly defined and measured. A Success Fee Agreement typically includes detailed success criteria, payment calculations, service scope, and party obligations, all structured to comply with Nigerian law and professional regulations. The document is essential when parties want to create a clear link between service provider compensation and successful outcomes, whether in M&A transactions, project development, fundraising, or other business initiatives where results-based payment is appropriate.
Suggested Sections

1. Parties: Identification of the service provider and client, including full legal names and addresses

2. Background: Context of the agreement, relationship between parties, and general purpose of the arrangement

3. Definitions: Key terms used throughout the agreement, including specific definition of 'Success' and related terms

4. Scope of Services: Detailed description of services to be provided by the service provider

5. Success Criteria: Clear, measurable criteria that constitute 'success' and trigger the success fee payment

6. Success Fee Structure: Detailed breakdown of how the success fee will be calculated and when it becomes payable

7. Payment Terms: Timing and method of payment, including any interim payments or expenses

8. Service Provider's Obligations: Specific responsibilities and commitments of the service provider

9. Client's Obligations: Specific responsibilities and commitments of the client

10. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

11. Confidentiality: Provisions regarding confidential information and its protection

12. Governing Law and Jurisdiction: Specification of Nigerian law as governing law and jurisdiction for disputes

13. Entire Agreement: Standard clause confirming this document represents the entire agreement between parties

14. Execution: Signature blocks and execution details

Optional Sections

1. Base Fee: Include when there is a basic fee in addition to the success fee

2. Expense Reimbursement: Include when the service provider can claim expenses separately from the success fee

3. Non-Circumvention: Include when there's risk of the client attempting to avoid success fee payment through restructuring or alternative arrangements

4. Force Majeure: Include when external factors could significantly impact the ability to achieve success criteria

5. Intellectual Property: Include when services involve creation or use of intellectual property

6. Non-Solicitation: Include when there's risk of staff poaching between parties

7. Dispute Resolution: Include when parties want to specify alternative dispute resolution methods before litigation

8. Insurance: Include when specific insurance coverage is required for the services

9. Assignment: Include when transfer of rights needs to be restricted or permitted under specific conditions

Suggested Schedules

1. Schedule 1 - Detailed Success Criteria: Detailed metrics and measurements for determining success

2. Schedule 2 - Fee Calculation Examples: Examples showing how success fee will be calculated in different scenarios

3. Schedule 3 - Service Description: Detailed description of services to be provided

4. Schedule 4 - Timeline and Milestones: Key dates and deliverables in the project

5. Schedule 5 - Reporting Requirements: Format and frequency of progress reports

6. Appendix A - Required Documentation: List of documents required to verify success criteria have been met

7. Appendix B - Key Personnel: List of key team members and their roles in delivering the services

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 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

Professional Services

Financial Services

Legal Services

Real Estate

Investment Banking

Management Consulting

Corporate Finance

Business Development

Mergers & Acquisitions

Project Development

Energy

Technology

Manufacturing

Construction

Relevant Teams

Legal

Finance

Business Development

Corporate Development

Strategy

Commercial

Operations

Project Management

Risk Management

Compliance

Relevant Roles

Chief Executive Officer

Managing Director

Chief Financial Officer

Legal Counsel

Business Development Manager

Investment Banker

Management Consultant

Project Manager

Corporate Finance Director

Business Advisor

Mergers & Acquisitions Director

Commercial Director

Head of Strategy

Chief Operating Officer

Finance 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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