Fee Share Agreement for Hong Kong

Fee Share Agreement Template for Hong Kong

A Fee Share Agreement governed by Hong Kong law establishes the terms and conditions for sharing professional fees or revenue between two or more parties. This document outlines the precise mechanism for calculating and distributing fees, defines each party's rights and obligations, and ensures compliance with Hong Kong's regulatory requirements. It includes provisions for payment terms, record-keeping, confidentiality, and dispute resolution, while addressing specific requirements under Hong Kong's professional services regulations and tax laws.

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What is a Fee Share Agreement?

Fee Share Agreements are essential documents used when two or more parties agree to share professional fees or revenue generated from business activities. This type of agreement is commonly used in Hong Kong's professional services sector, particularly among law firms, financial advisors, consultants, and other service providers. The Fee Share Agreement establishes clear parameters for revenue sharing, including calculation methodologies, payment terms, and compliance with Hong Kong regulatory requirements. It's particularly important in regulated industries where fee-sharing arrangements must meet specific legal and professional conduct requirements. The document helps prevent disputes by clearly defining each party's rights, obligations, and the mechanics of the fee-sharing arrangement.

What sections should be included in a Fee Share Agreement?

1. Parties: Identification of all parties entering into the fee sharing arrangement

2. Background: Context of the agreement and relationship between the parties

3. Definitions: Key terms used throughout the agreement

4. Fee Sharing Structure: Core terms defining the fee split ratios and calculation methodology

5. Payment Terms: Timing, method, and currency of payments, including invoicing requirements

6. Parties' Obligations: Key responsibilities and commitments of each party

7. Record Keeping and Audit Rights: Requirements for maintaining financial records and rights to audit

8. Confidentiality: Protection of confidential information shared between parties

9. Term and Termination: Duration of the agreement and circumstances for termination

10. Governing Law and Jurisdiction: Confirmation of Hong Kong law and jurisdiction

11. General Provisions: Standard boilerplate clauses including notices, amendments, and entire agreement

What sections are optional to include in a Fee Share Agreement?

1. Non-Competition: Restrictions on competing activities, used when parties operate in similar markets

2. Intellectual Property: IP ownership and licensing provisions, needed when shared work involves creation of IP

3. Data Protection: Specific data handling requirements, required when personal data is processed

4. Professional Qualifications: Requirements for maintaining professional credentials, needed for regulated professions

5. Insurance: Insurance requirements, important when significant risks are involved

6. Force Majeure: Provisions for unforeseeable circumstances, useful for long-term arrangements

7. Dispute Resolution: Alternative dispute resolution procedures, recommended for high-value arrangements

What schedules should be included in a Fee Share Agreement?

1. Fee Calculation Schedule: Detailed methodology for calculating fee shares, including examples

2. Payment Procedures: Step-by-step process for payment calculations and transfers

3. Service Areas: Specification of services or business areas covered by the arrangement

4. Authorized Representatives: List of key contacts and their authority levels

5. Compliance Requirements: Specific regulatory or professional requirements applicable to the arrangement

6. Form of Invoice: Template for invoices to be used under the agreement

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

Jurisdiction

Hong Kong

Publisher

Genie AI

Document Type

Evaluation Form

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Legal Services

Financial Services

Professional Services

Real Estate

Insurance

Investment Banking

Management Consulting

Accounting

Business Advisory

Healthcare

Recruitment

Property Management

Relevant Teams

Legal

Finance

Compliance

Operations

Business Development

Commercial

Partnership Management

Professional Services

Client Relations

Risk Management

Relevant Roles

Managing Partner

Chief Financial Officer

Finance Director

Business Development Manager

Compliance Officer

Legal Counsel

Professional Consultant

Financial Advisor

Managing Director

Operations Manager

Partnership Manager

Senior Associate

Relationship Manager

Commercial Director

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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