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Revenue / Fee Sharing Agreement - Service Fee


Protect your business and clients with our customisable revenue/fee sharing agreement template for service providers.

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Document Description

This Revenue/Fee Sharing Agreement - Service Fee document is a legally binding agreement between two parties: the Servicer and the Referrer. The document outlines the terms and conditions for sharing fees between the parties, with the Servicer sharing its fees with the Referrer in exchange for the Referrer referring clients to the Servicer.


The document begins with an interpretation section, defining key terms such as 'Agreement', 'Excluded Persons', 'Services', and 'Service Fees'. It clarifies that the Service Fees charged by the Servicer to the client will be shared with the Referrer, after deducting any applicable taxes and expenses.


The document then moves on to the Referral Term section, which specifies the duration of the agreement. It states that the Referrer will have an exclusive engagement with the Servicer for a specified term, during which the Referrer will source independent third-party clients for the Servicer's services. The Referrer accepts this engagement.


Next, the document outlines the Servicer's obligations. It states that the Servicer agrees to share a percentage of the Service Fees received from referred clients with the Referrer as compensation. The Servicer is obligated to make the commission payment to the Referrer within a specified number of business days after receiving payment from the referred client. The commission may be reduced if there are any claims or liabilities against the Servicer by referred clients, and the Referrer agrees to refund any commission already paid in such cases. The Servicer also has the primary responsibility for performing the agreed services for referred clients and must comply with all applicable laws and regulations.


The document then outlines the obligations of the Referrer. It states that the Referrer must use its existing connections and channels to secure business for the Servicer and can only describe itself as the authorized relationship for the services. The Referrer will continue to liaise with referred clients on behalf of the Servicer and may disclose necessary information about the Servicer to promote the services. The Referrer may use the Servicer's trademarks and other authorized intellectual property in performing its duties. The Referrer must promptly notify the Servicer of any inquiries or orders received from clients and potential clients, maintain a list of customers and potential customers, and inform the Servicer of any complaints or after-sales inquiries. The Referrer is prohibited from pledging the credit of the Servicer, using unauthorized advertising materials, engaging in conduct prejudicial to the Servicer's business, or being involved in competing services without written authorization.


The document includes a confidentiality clause, stating that the Referrer must treat any confidential information provided by the Servicer as confidential and not exploit or disclose it without prior written consent. The Referrer may disclose relevant parts of the confidential information to customers and potential customers to promote the services. The rights, confidential information, and intellectual property rights in the products belong to the Servicer. The Referrer must promptly notify the Servicer of any infringement or claim related to the rights or confidential information and take requested action at the Servicer's expense. The confidentiality provisions remain in force even after the termination of the agreement.


The document includes general clauses regarding the mortgage, charge, or assignment of rights, the independent contractor relationship between the parties, waiver of rights, illegal or void provisions, modification of the agreement, and the entire agreement between the parties. It also includes termination provisions, consequences of termination, no rights for third parties, arbitration, and proper law. The document specifies the method of giving notices and the addresses of the parties for the purpose of notice. It is signed by the duly authorized representatives of both parties.


In summary, this detailed description provides a comprehensive overview of the Revenue/Fee Sharing Agreement - Service Fee document, highlighting its purpose, key sections, and the obligations of the parties involved.

How to use this document?

To effectively use the Revenue/Fee Sharing Agreement - Service Fee document, follow these steps:


1. Understand the purpose: Recognize that this agreement is designed to establish a fee-sharing arrangement between the Servicer and the Referrer, where the Referrer refers clients to the Servicer in exchange for a share of the Service Fees.

2. Define key terms: Familiarize yourself with the definitions provided in the interpretation section, such as 'Agreement', 'Excluded Persons', 'Services', and 'Service Fees'. This will ensure a clear understanding of the document.

3. Determine the referral term: Identify the duration of the agreement, as specified in the Referral Term section. Note whether the agreement is automatically renewed or requires termination notice.

4. Understand the Servicer's obligations: Review the Servicer's obligations, which include sharing a percentage of the Service Fees with the Referrer, making commission payments within a specified timeframe, and performing the agreed services for referred clients. Ensure compliance with applicable laws and regulations.

5. Comprehend the Referrer's obligations: Familiarize yourself with the Referrer's responsibilities, such as using existing connections to secure business for the Servicer, liaising with referred clients, and promoting the services in good faith. Adhere to the restrictions on using unauthorized materials and engaging in competing services.

6. Maintain confidentiality: Understand the confidentiality clause and treat any confidential information provided by the Servicer accordingly. Seek written consent before exploiting or disclosing such information and ensure that employees or clients who receive the information are aware of its confidential nature.

7. Termination provisions: Be aware of the conditions under which either party can terminate the agreement, such as breaches, insolvency, or cessation of business. Understand the consequences of termination, including the cessation of promotion and marketing activities.

8. Seek legal advice if necessary: If you have any doubts or require further clarification, consult with a legal professional to ensure compliance and understanding of the agreement.


Following these steps will help you effectively utilize the Revenue/Fee Sharing Agreement - Service Fee document and establish a clear fee-sharing arrangement between the Servicer and the Referrer.

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