Success Fee Contract Template for Switzerland

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Key Requirements PROMPT example:

Success Fee Contract

"I need a Success Fee Contract for my M&A advisory services, where the success fee is 2% of the final transaction value for any successful company sale completed before December 2025, with a minimum transaction value of 5 million CHF."

Document background
The Success Fee Contract is essential for business relationships where compensation is contingent upon achieving specific outcomes or performance metrics. This document type is particularly relevant in Switzerland, where success-fee arrangements must comply with specific regulatory requirements and the Swiss Code of Obligations. It is commonly used in professional services, financial advisory, real estate transactions, and business development contexts. The contract typically includes detailed success criteria, calculation methodologies, payment triggers, and compliance requirements. It's designed to protect both parties' interests while ensuring transparency and enforceability under Swiss law, particularly important in regulated industries where success fees may be subject to specific limitations or disclosure requirements.
Suggested Sections

1. Parties: Identification and details of the service provider and client

2. Background: Context of the agreement and business relationship

3. Definitions: Key terms used throughout the agreement, including 'Success', 'Success Fee', and 'Base Fee' if applicable

4. Scope of Services: Detailed description of services to be provided

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

6. Fee Structure: Calculation methodology for success fees, including any base fees, caps, or minimum amounts

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

8. Obligations of the Parties: Specific duties and responsibilities of both parties

9. Term and Termination: Duration of the agreement and termination provisions, including effect on success fee claims

10. Confidentiality: Protection of confidential information exchanged during the engagement

11. Governing Law and Jurisdiction: Specification of Swiss law application and jurisdiction for disputes

Optional Sections

1. Base Fee Provisions: Used when the agreement includes both fixed and success-based compensation

2. Regulatory Compliance: Required for regulated industries (e.g., financial services, legal services)

3. Non-Circumvention: Used in business introduction or intermediary services to protect success fee claims

4. Milestone Payments: Included when success fees are tied to multiple milestones

5. Exclusivity: When the service provider is granted exclusive rights

6. Force Majeure: Provisions for extraordinary circumstances affecting success criteria

7. Insurance Requirements: Required for high-value services or regulated industries

8. Assignment Rights: Used when transfer of rights needs to be specifically addressed

Suggested Schedules

1. Schedule 1 - Service Description: Detailed scope of services and deliverables

2. Schedule 2 - Success Criteria Details: Specific metrics, targets, or events that constitute success

3. Schedule 3 - Fee Calculation Examples: Illustrative examples of how success fees will be calculated in various scenarios

4. Schedule 4 - Required Documentation: List of documents required to verify success criteria achievement

5. Schedule 5 - Timeline and Milestones: Key dates and milestones relevant to success fee determination

6. Appendix A - Compliance Requirements: Specific regulatory requirements applicable to the success fee arrangement

7. Appendix B - Reporting Templates: Standard forms for reporting on progress and success criteria achievement

Authors

Alex Denne

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

Clauses
Relevant Industries

Financial Services

Real Estate

Management Consulting

Investment Banking

Business Brokerage

Professional Services

Corporate Advisory

Mergers & Acquisitions

Private Equity

Commercial Real Estate

Business Development

Legal Services

Relevant Teams

Legal

Finance

Business Development

Corporate Development

Compliance

Commercial

Partnerships

Advisory Services

Deal Execution

Contract Management

Relevant Roles

Business Development Manager

Chief Financial Officer

Legal Counsel

Corporate Development Director

Investment Banking Director

M&A Director

Real Estate Broker

Business Broker

Financial Advisor

Management Consultant

Partnership Manager

Commercial Director

Business Advisory Director

Compliance Officer

Contract 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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