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Fee Share Agreement for United Arab Emirates

Fee Share Agreement Template for United Arab Emirates

A Fee Share Agreement under UAE law is a legally binding contract that establishes the terms and conditions for sharing fees, commissions, or revenues between two or more parties. The document outlines the fee calculation methodology, payment terms, parties' obligations, and compliance requirements in accordance with UAE Federal Laws, including the UAE Civil Code and Commercial Transactions Law. It includes provisions for record-keeping, audit rights, confidentiality, and dispute resolution mechanisms specific to the UAE jurisdiction, ensuring that the fee-sharing arrangement is transparent, enforceable, and compliant with local regulations.

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What is a Fee Share Agreement?

The Fee Share Agreement is essential for businesses operating in the UAE who wish to formalize arrangements for sharing fees, commissions, or revenues. This document is commonly used when parties collaborate to provide services or generate business opportunities and need to establish clear terms for revenue distribution. The agreement must comply with UAE Federal Law No. 5 of 1985 (Civil Code) and other relevant commercial regulations. It typically includes detailed provisions on fee calculations, payment mechanisms, confidentiality, and dispute resolution procedures. The document is particularly important in professional services, consulting, and real estate sectors where fee-sharing arrangements are common practice. Given the UAE's specific regulatory requirements, the Fee Share Agreement must be carefully structured to ensure enforceability and compliance with local laws, including free zone regulations where applicable.

What sections should be included in a Fee Share Agreement?

1. Parties: Identification and details of all parties entering into the fee share agreement

2. Background: Context of the agreement, relationship between parties, and purpose of the fee sharing arrangement

3. Definitions: Definitions of key terms used throughout the agreement

4. Scope of Agreement: Details of the business relationship and activities covered by the fee sharing arrangement

5. Fee Sharing Structure: Detailed explanation of how fees will be calculated, shared, and distributed between parties

6. Payment Terms: Timeline and method of fee payments, including currency, payment methods, and payment periods

7. Parties' Obligations: Specific duties and responsibilities of each party under the agreement

8. Record Keeping and Audit Rights: Requirements for maintaining financial records and rights to audit fee calculations

9. Confidentiality: Provisions regarding the treatment of confidential information shared between parties

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

11. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for dispute resolution

12. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

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

1. Non-Compete: Restrictions on competitive activities, used when parties may compete in the same market

2. Intellectual Property Rights: IP ownership and usage rights, included when the arrangement involves creation or use of IP

3. Marketing and Branding: Rules for using each other's brands and marketing materials, needed when public association exists

4. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in long-term arrangements

5. Data Protection: Compliance with data protection laws, required when personal data is processed

6. Insurance: Insurance requirements, included when specific risk coverage is needed

7. Dispute Resolution: Detailed dispute resolution procedures, including mediation or arbitration, when preferred over court proceedings

What schedules should be included in a Fee Share Agreement?

1. Fee Calculation Schedule: Detailed methodology and examples of fee calculations

2. Service Level Agreement: Performance metrics and service standards if applicable

3. Approved Client List: List of clients or projects covered by the fee sharing arrangement

4. Payment Procedures: Detailed procedures for invoicing, payment processing, and reconciliation

5. Compliance Requirements: Specific regulatory or industry compliance requirements

6. Contact Details: Key contact persons and their details for various aspects of 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

Publisher

Genie AI

Document Type

Fee Agreement

Cost

Free to use

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