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Success Fee Agreement

Success Fee Agreement Template for New Zealand

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Key Requirements PROMPT example:

Success Fee Agreement

"I need a Success Fee Agreement for my business consultancy firm, where we'll receive 5% of the cost savings we achieve for our manufacturing client over the 2025 financial year, with quarterly performance reviews and payment schedules."

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Document background
The Success Fee Agreement is commonly used in New Zealand business contexts where payment for services is tied to specific outcomes or performance metrics. This document is particularly relevant in professional services, corporate finance, real estate, and business advisory sectors, where service providers agree to receive compensation based on successful achievement of defined goals. The agreement typically includes detailed success criteria, payment calculations, and risk allocation between parties. It must comply with New Zealand legislation, including the Contract and Commercial Law Act 2017, Fair Trading Act 1986, and relevant industry-specific regulations. The Success Fee Agreement is especially useful when parties want to align interests and incentivize performance, commonly used in transactions such as business sales, capital raising, project completion, or achievement of specific business objectives.
Suggested Sections

1. Parties: Identification of all parties to the agreement, including full legal names and addresses

2. Background: Context of the agreement, relationship between parties, and general purpose of the arrangement

3. Definitions: Key terms used throughout the agreement, including specific definition of 'success' and how it will be measured

4. Scope of Services: Detailed description of services to be provided by the service provider

5. Success Criteria: Clear and specific criteria that define when success has been achieved and the fee becomes payable

6. Fee Structure: Detailed explanation of how the success fee will be calculated, including any base fees if applicable

7. Payment Terms: Timing and method of payment, including any staged payments or verification processes

8. Obligations and Responsibilities: Specific duties and responsibilities of each party

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 engagement

11. General Provisions: Standard contractual clauses including governing law, notices, and entire agreement

Optional Sections

1. Intellectual Property: Required when the services involve creation or use of intellectual property

2. Non-Compete: Optional clause to prevent the service provider from working with competitors, if relevant to the industry

3. Force Majeure: Clause dealing with unforeseen circumstances, particularly relevant for long-term agreements

4. Insurance: Required when the services involve significant risks or regulatory requirements

5. Data Protection: Required when personal or sensitive data will be processed as part of the services

6. Warranties and Indemnities: Additional protections and guarantees, particularly relevant for high-value or high-risk engagements

7. Third Party Rights: Required when the success fee arrangement might affect or depend on third parties

Suggested Schedules

1. Schedule 1 - Service Description: Detailed specification of services to be provided

2. Schedule 2 - Success Criteria Metrics: Detailed metrics and measurement methods for determining success

3. Schedule 3 - Fee Calculation: Detailed formula and examples of how success fees will be calculated

4. Schedule 4 - Key Personnel: List of key people involved in delivering the services, if applicable

5. Appendix A - Required Reports: Templates or formats for any required reporting

6. Appendix B - Communication Protocol: Procedures for regular communication and progress reporting

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions



























Clauses






























Relevant Industries

Professional Services

Management Consulting

Investment Banking

Real Estate

Recruitment

Business Advisory

Corporate Finance

Mergers & Acquisitions

Project Management

Business Brokerage

Financial Services

Legal Services

Relevant Teams

Legal

Finance

Business Development

Corporate Development

Operations

Commercial

Procurement

Risk Management

Compliance

Human Resources

Relevant Roles

CEO

Managing Director

Business Development Manager

Corporate Finance Manager

Investment Advisor

Business Broker

Real Estate Agent

Project Manager

Legal Counsel

Finance Director

Business Consultant

Recruitment Consultant

M&A Advisor

Commercial Director

Operations 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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