The Fee Share Agreement is essential for businesses and professionals in New Zealand who wish to formalize arrangements for sharing revenues, commissions, or fees. This document is commonly used in professional services, financial services, and various business partnerships where income or revenues need to be divided between participating parties. The agreement ensures compliance with New Zealand's regulatory framework, including tax legislation and commercial law requirements. It typically includes detailed mechanisms for fee calculation, payment procedures, reporting obligations, and dispute resolution processes. The Fee Share Agreement is particularly valuable for arrangements involving ongoing business relationships, referral partnerships, or joint service delivery where clear financial arrangements are crucial for successful collaboration.
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1. Parties: Identification and details of all parties to the fee share agreement
2. Background: Context of the agreement, existing relationships, and purpose of the fee sharing arrangement
3. Definitions: Key terms used throughout the agreement, including definition of fees, calculation periods, and payment terms
4. Fee Structure: Detailed explanation of how fees will be calculated, shared, and allocated between parties
5. Payment Terms: Timing, method, and currency of fee payments, including payment procedures and bank account details
6. Reporting and Reconciliation: Requirements for financial reporting, fee calculations verification, and periodic reconciliation processes
7. Records and Audit Rights: Obligations regarding record keeping and rights to audit fee calculations and supporting documentation
8. Tax Obligations: Treatment of GST and other applicable taxes, tax reporting responsibilities
9. Term and Termination: Duration of the agreement and circumstances under which it can be terminated
10. Confidentiality: Protection of confidential information shared during the fee sharing arrangement
11. Dispute Resolution: Process for resolving disputes related to fee calculations or agreement interpretation
12. General Provisions: Standard legal provisions including governing law, notices, and amendment procedures
1. Non-Competition: Restrictions on competing activities, used when parties operate in similar markets
2. Intellectual Property: IP rights and usage terms, included when fee sharing involves licensed IP or branded services
3. Service Level Requirements: Performance standards and metrics, used when fee sharing is tied to service delivery
4. Force Majeure: Provisions for unexpected events affecting fee generation, included for longer-term arrangements
5. Assignment Rights: Terms for transferring rights under the agreement, included for more complex commercial arrangements
6. Marketing and Branding: Guidelines for marketing and brand usage, included when public promotion is involved
7. Insurance Requirements: Insurance obligations, included when activities carrying significant risks are involved
1. Fee Calculation Schedule: Detailed methodology and examples of fee calculations
2. Payment Procedures: Step-by-step process for fee collection, calculation, and distribution
3. Reporting Template: Standard format for periodic fee reporting and reconciliation
4. Service Description: Detailed description of services or activities generating the fees
5. Authorized Representatives: List of designated contacts for fee-related communications and approvals
6. Historical Fee Data: Previous fee information if agreement is based on historical arrangements
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