Success Fee Agreement Template for Switzerland

Success Fee Agreements are essential documents in Swiss business practice where compensation is linked to specific outcomes or achievements. These agreements are particularly common in professional services, M&A transactions, real estate deals, and consulting arrangements. The Success Fee Agreement must be carefully structured to comply with Swiss law, which places certain restrictions on pure contingency fees, especially in legal services. The document typically includes detailed success criteria, measurement methods, payment structures, and provisions for various outcome scenarios. It's crucial for business relationships where incentivizing specific results is desired while maintaining compliance with Swiss regulatory requirements. The agreement should clearly define what constitutes success, how and when the success fee is calculated and paid, and address scenarios such as partial success or early termination.

1. Parties: Identification of the service provider and the client, including full legal names, addresses, and registration details

2. Background: Context of the agreement, description of the client's objectives and the service provider's expertise

3. Definitions: Key terms used in the agreement, particularly defining 'Success Event(s)', 'Base Fee', 'Success Fee', and other relevant terms

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

5. Success Criteria: Clear and measurable definition of what constitutes 'success' triggering the success fee

6. Fee Structure: Breakdown of base fee (if any) and success fee calculation methodology

7. Payment Terms: Timing and method of payment, including invoicing procedures and payment deadlines

8. Service Provider's Obligations: Detailed responsibilities and commitments of the service provider

9. Client's Obligations: Client's responsibilities, including provision of information and cooperation

10. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

11. Consequences of Termination: Treatment of fees in case of early termination or partial success

12. Confidentiality: Obligations regarding confidential information

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