The Success Fee Consulting Agreement is essential for businesses in Malaysia seeking to engage consultants on a performance-linked compensation basis. This document type is particularly valuable when organizations want to align consultant compensation with specific business outcomes or project success metrics. The agreement is structured to comply with Malaysian legal requirements while providing flexibility to accommodate various consulting arrangements. It includes detailed provisions for defining success criteria, calculating fees, protecting confidential information, and managing the consulting relationship. This document type is commonly used for strategic projects, business transformations, M&A advisory, and other high-value consulting engagements where the consultant's compensation is directly tied to achieving agreed-upon objectives. The Success Fee Consulting Agreement helps minimize upfront costs while incentivizing consultants to achieve optimal results for their clients.
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1. Parties: Identification of the consultant and the client, including full legal names, registration numbers, and registered addresses
2. Background: Context of the agreement, brief description of the client's needs and consultant's expertise
3. Definitions: Definitions of key terms used throughout the agreement, including 'Services', 'Success Fee', 'Deliverables', and 'Success Criteria'
4. Appointment and Scope of Services: Formal appointment of consultant and detailed description of the consulting services to be provided
5. Success Criteria and Metrics: Clear definition of what constitutes success and how it will be measured
6. Fees and Payment Terms: Structure of success fees, calculation methods, payment timing, and any base fees if applicable
7. Term and Termination: Duration of the agreement and circumstances under which it can be terminated
8. Consultant's Obligations: Key responsibilities, performance standards, and commitments of the consultant
9. Client's Obligations: Client's responsibilities, including provision of information and cooperation
10. Confidentiality: Protection of confidential information exchanged during the engagement
11. Intellectual Property: Ownership and rights to work product and pre-existing IP
12. Limitation of Liability: Caps on liability and exclusions of certain types of damages
13. Governing Law and Jurisdiction: Specification of Malaysian law as governing law and jurisdiction for disputes
1. Non-Compete: Restrictions on consultant's ability to work with competitors, used when sensitive competitive information is involved
2. Force Majeure: Provisions for unforeseen circumstances preventing performance, particularly relevant in long-term engagements
3. Insurance: Requirements for professional indemnity or other insurance, important for high-value or high-risk consulting
4. Assignment: Rights to transfer the agreement, relevant when working with larger consulting firms
5. Dispute Resolution: Alternative dispute resolution procedures, useful for complex or international engagements
6. Expenses: Treatment of expenses and reimbursement procedures, needed if significant travel or external costs are expected
7. Key Personnel: Identification of specific consultants who must perform the services, important for expertise-dependent projects
1. Schedule 1 - Scope of Services: Detailed breakdown of services, deliverables, and timeline
2. Schedule 2 - Success Fee Calculation: Detailed formula and examples of success fee calculations
3. Schedule 3 - Key Performance Indicators: Specific metrics and targets that define success
4. Schedule 4 - Service Levels: Expected performance standards and response times
5. Schedule 5 - Key Personnel: Details of key team members and their roles
6. Appendix A - Required Reports: Templates and descriptions of required reporting
7. Appendix B - Client Materials: List of materials and information to be provided by client
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