Success Fee Agreement Template for Malaysia

This document is essential for business arrangements in Malaysia where compensation is tied to specific outcomes or performance metrics. A Success Fee Agreement is commonly used in professional services, corporate transactions, and advisory relationships where the service provider's compensation is partially or wholly dependent on achieving defined objectives. The agreement needs to carefully balance the interests of both parties while ensuring compliance with Malaysian legal requirements, including the Contracts Act 1950 and relevant professional regulations. It's particularly important in scenarios such as M&A transactions, business development initiatives, or consulting projects where the value delivered can be clearly measured against predetermined criteria. The document typically includes detailed success criteria, fee calculation methodologies, payment triggers, and protection mechanisms for both parties.

1. Parties: Identifies and defines all parties to the agreement, including their full legal names, registration numbers (if applicable), and registered addresses

2. Background: Sets out the context of the agreement, including the nature of services to be provided and the basis for the success fee arrangement

3. Definitions: Defines key terms used throughout the agreement, including what constitutes 'success' and how the success fee is calculated

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

5. Success Criteria: Clear and specific definition of what constitutes 'success' that will trigger the payment obligation

6. Fee Structure: Detailed breakdown of the success fee calculation method, including any base fees and the success fee percentage

7. Payment Terms: Timeline and method for payment of the success fee once triggered

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

9. Confidentiality: Obligations regarding confidential information shared during the engagement

10. General Provisions: Standard contractual provisions including governing law, notices, entire agreement, and amendments