Guarantee Fee Agreement Template for Switzerland

The Guarantee Fee Agreement is essential in situations where one party (the guarantor) provides a guarantee in favor of another party (the beneficiary) and requires compensation for this service. This document type is commonly used in Swiss financial and commercial transactions, particularly when banks or financial institutions issue guarantees for corporate clients. The agreement details the fee structure, calculation methodology, payment terms, and related obligations, ensuring clarity and enforceability under Swiss law. The Guarantee Fee Agreement becomes particularly important in international trade, project finance, and corporate transactions where guarantees are required as security or performance support. The document must comply with Swiss regulatory requirements and banking practices, while also considering any international implications if foreign parties are involved.

1. Parties: Identification of the guarantor and the beneficiary, including their full legal names, registration details, and addresses

2. Background: Context of the agreement, reference to the underlying guarantee, and the purpose of the fee arrangement

3. Definitions: Definitions of key terms used throughout the agreement, including 'Guarantee', 'Guarantee Fee', 'Payment Date', etc.

4. Guarantee Fee: Details of the fee structure, calculation method, and basis for the fee

5. Payment Terms: Timing and method of fee payments, including payment dates, currency, and payment instructions

6. Duration: Term of the fee agreement and its relationship to the underlying guarantee's duration

7. Adjustment of Fees: Circumstances and process for adjusting the guarantee fee, if applicable

8. Rights and Obligations: Key responsibilities of both parties regarding the fee arrangement

9. Default and Remedies: Consequences of non-payment and available remedies

10. Termination: Circumstances under which the agreement can be terminated and the consequences

11. Notices: Process and requirements for formal communications between parties

12. Governing Law and Jurisdiction: Specification of Swiss law as governing law and jurisdiction for disputes