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Success Fee Contract
"I need a Success Fee Contract for my investment advisory firm in Jakarta, where we'll provide M&A advisory services to a medium-sized manufacturing company, with a success fee of 2% of the final transaction value if we successfully complete the sale by June 2025."
1. Parties: Identification of the service provider and client, including full legal names, registration numbers, and addresses
2. Background: Context of the agreement, describing the client's needs and service provider's expertise
3. Definitions: Key terms used throughout the agreement, including 'Success Event', 'Success Fee', 'Services', and 'Payment Terms'
4. Scope of Services: Detailed description of the services to be provided and the expected outcomes
5. Success Criteria: Clear definition of what constitutes success and triggers the payment obligation
6. Fee Structure: Detailed breakdown of the success fee calculation method, percentages, or fixed amounts
7. Payment Terms: Timeline and method of payment once success criteria are met, including invoicing process
8. Term and Termination: Duration of the agreement and circumstances under which it can be terminated
9. Representations and Warranties: Basic promises and guarantees made by both parties
10. Confidentiality: Protection of sensitive information exchanged during the engagement
11. Governing Law and Dispute Resolution: Specification of Indonesian law as governing law and dispute resolution mechanisms
1. Exclusivity: Used when the service provider is granted exclusive rights to provide the services
2. Force Majeure: Include when parties want to address circumstances beyond their control that may affect performance
3. Non-Circumvention: Used in broker or intermediary arrangements to prevent direct dealings between introduced parties
4. Intellectual Property Rights: Include when the services involve creation or use of intellectual property
5. Regulatory Compliance: Used when the services are in regulated industries requiring specific compliance measures
6. Post-Termination Obligations: Include when success fee rights need to survive contract termination
7. Anti-Bribery and Corruption: Important for high-value transactions or government-related services
1. Schedule 1 - Service Description: Detailed scope of services and deliverables
2. Schedule 2 - Success Fee Calculation: Detailed formula and examples of success fee calculations
3. Schedule 3 - Success Criteria Matrix: Specific measurable criteria that constitute success
4. Schedule 4 - Key Personnel: List of key team members involved in providing the services
5. Appendix A - Required Documentation: List of documents required to verify achievement of success criteria
6. Appendix B - Payment Process: Step-by-step process for invoicing and payment procedures
Authors
Financial Services
Real Estate
Mergers & Acquisitions
Investment Banking
Business Consulting
Property Development
Corporate Finance
Private Equity
Investment Management
Business Brokerage
Project Management
Corporate Advisory
Legal
Finance
Business Development
Corporate Development
Mergers & Acquisitions
Investment
Commercial
Project Management
Risk Management
Compliance
Chief Executive Officer
Business Development Manager
Investment Advisor
Corporate Lawyer
Financial Director
Business Consultant
M&A Director
Project Manager
Commercial Director
Chief Financial Officer
Legal Counsel
Business Broker
Investment Manager
Transaction Advisory Manager
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