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Fee Share Agreement Template for South Africa

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Key Requirements PROMPT example:

Fee Share Agreement

"I need a Fee Share Agreement for a law firm partnership where three senior partners will share revenues from corporate clients on a 40-30-30 basis, with quarterly settlements and specific provisions for client conflicts."

Document background
The Fee Share Agreement is essential for businesses and professionals in South Africa who wish to formalize arrangements for sharing fees, commissions, or revenue. This document is commonly used in professional services, partnership arrangements, and business collaborations where income needs to be distributed between multiple parties. The agreement ensures compliance with South African legislation, including the Income Tax Act, Consumer Protection Act, and relevant professional regulations. It typically includes detailed provisions for fee calculations, payment mechanisms, record-keeping requirements, and dispute resolution procedures. The Fee Share Agreement is particularly valuable for structuring commission-based relationships, professional partnerships, and referral arrangements, providing clarity and legal protection for all parties involved.
Suggested Sections

1. Parties: Identification and details of all parties entering into the fee-sharing arrangement

2. Background: Context of the agreement and brief description of the business relationship

3. Definitions: Definitions of key terms used throughout the agreement

4. Fee Structure: Detailed explanation of the fee-sharing formula, percentages, and calculation methods

5. Payment Terms: Timing, method, and process for fee calculations and payments

6. Obligations of the Parties: Specific duties and responsibilities of each party in the fee-sharing arrangement

7. Record Keeping and Accounting: Requirements for maintaining financial records and conducting reconciliations

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

9. Confidentiality: Provisions regarding the protection of confidential information

10. Dispute Resolution: Process for resolving disagreements between parties

11. General Provisions: Standard legal clauses including governing law, notices, and amendments

Optional Sections

1. Non-Competition: Restrictions on competitive activities, used when parties operate in the same industry

2. Intellectual Property: IP rights and usage terms, included when the arrangement involves shared IP or branding

3. Professional Indemnity: Additional protection clauses, particularly relevant for professional service providers

4. Force Majeure: Provisions for unforeseen circumstances, included in higher-value or critical arrangements

5. Data Protection: POPIA compliance clauses, needed when personal information is processed

6. Marketing and Promotion: Terms for joint marketing activities, relevant for public-facing partnerships

7. Quality Control: Standards and monitoring procedures, important for service-based arrangements

Suggested Schedules

1. Fee Calculation Schedule: Detailed breakdown of fee calculations, formulas, and examples

2. Service Level Agreement: Specific performance metrics and service standards

3. Payment Procedures: Detailed procedures for invoicing, payment processing, and reconciliation

4. Authorized Representatives: List of designated contacts and their authority levels

5. Compliance Requirements: Specific regulatory or professional requirements applicable to the arrangement

6. Territory Schedule: Geographic areas covered by the agreement, if applicable

7. Revenue Categories: Classification of different revenue streams and their treatment under the agreement

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

Legal Services

Healthcare

Financial Services

Real Estate

Professional Services

Consulting

Information Technology

Education

Recruitment

Business Services

Relevant Teams

Legal

Finance

Operations

Compliance

Commercial

Business Development

Professional Services

Accounts

Risk Management

Contract Administration

Relevant Roles

Managing Partner

Financial Director

Business Development Manager

Legal Counsel

Professional Services Director

Operations Manager

Compliance Officer

Contract Manager

Chief Financial Officer

Partnership Director

Commercial Director

Practice 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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