Click "Create Document" button and the document will be prepared with your account details automatically filled in.
Please fill in any additional information by following the step-by-step guide on the left hand side of the preview document and click the "Next" button.
When you are done, click the "Get Document" button and you can download the document in Word or PDF format.
Please review the document carefully and make any final modifications to ensure that the details are correct before sending to the addressee.
The Revenue/Fee Sharing Letter - Success Fee is an important document that outlines the agreement between Party 1 and Party 2 regarding the sharing of fees received from the original party or its affiliates for introducing potential investment participants. The document begins with a brief introduction, stating that it confirms the verbal agreement on the sharing arrangement. It also clarifies that any terms not defined in this letter will be as defined in the agreement.
The document then provides a detailed description of the project and the role of Party 2 as the introducer. It mentions that Party 2 and the fee sharer have jointly arranged for potential investors for the project. The document specifies that in consideration for arranging these investors, the fee sharer agrees to share a certain percentage of all fees received from the original party with Party 1. This includes a fee equivalent to a success fee percentage of the aggregate investment amount by the investors introduced by Party 2.
The document further explains that any shared fee shall be paid by Party 1 within 7 days of receipt from the original party. It emphasizes that all shared fees should be paid to the bank account designated by Party 2. It also clarifies that the fee sharer will not be liable for any fees not actually received from the company.
Additionally, the document includes a confidentiality clause, stating that both parties agree to keep any proprietary information confidential, except as required by applicable law or judicial process. It also addresses the situation where the company fails to pay the success fee, stating that both parties will jointly make efforts to pursue the company for the fees, and Party 2 will be responsible for the costs in its respective proportion.
The document concludes by stating that it supersedes all previous agreements and understanding between the parties and that any notices under this agreement should be made in writing or by email. It also includes a jurisdiction clause and expresses the parties' anticipation of working together.
In summary, the Revenue/Fee Sharing Letter - Success Fee is a detailed document that outlines the agreement between Party 1 and Party 2 regarding the sharing of fees received from the original party. It covers the project details, the fee sharing arrangement, payment terms, confidentiality, and the procedure in case of non-payment.
To use the Revenue/Fee Sharing Letter - Success Fee document effectively, follow these steps:
1. Provide information: Enter the names and addresses of Party 1 and Party 2 in the agreement, along with their principal place of business. This ensures that both parties are clearly identified.
2. Understand the project: Familiarize yourself with the details of the project mentioned in the document. This will help you understand the context of the fee sharing arrangement.
3. Determine the fee sharing percentage: Agree on the percentage of fees that Party 1 will share with Party 2 for introducing potential investors. This should be based on mutual agreement and consideration.
4. Specify the success fee: Clearly define the success fee as a percentage of the aggregate investment amount by the investors introduced by Party 2. This ensures that both parties are aware of the specific fee structure.
5. Payment terms: Agree on the timeframe for Party 1 to pay the shared fees to Party 2. This should be within 7 days of receipt from the original party. Also, specify the bank account designated by Party 2 for receiving the shared fees.
6. Maintain confidentiality: Both parties should commit to keeping any proprietary information confidential, except as required by law or judicial process. This helps protect sensitive information.
7. Non-payment procedure: Discuss and agree on the procedure to be followed if the company fails to pay the success fee. Jointly make efforts to pursue the company for the fees, and ensure Party 2's responsibility for the costs in its respective proportion.
8. Review and sign: Carefully review the entire document and make any necessary amendments. Once both parties are satisfied, sign the document in counterparts.
By following these steps, you can effectively use the Revenue/Fee Sharing Letter - Success Fee document and ensure a clear understanding of the fee sharing arrangement between Party 1 and Party 2.