Can this agreement be signed electronically?

Yes. Electronic signatures are generally enforceable under the ESIGN Act (15 U.S.C. ch. 96, 2000) and UETA where adopted, provided parties demonstrate intent, consent, attribution, and that records are retained and reproducible.

When is notarization required?

Most fee arrangements do not require notarization. Notarization is only necessary when a state statute or the parties require it, or when the document conveys or encumbers real property.

What happens if a name mismatches tax records?

A mismatched name or TIN can trigger backup withholding (24%) and 1099 reporting issues. Obtain correct legal names and TINs before payment to avoid IRS penalties and withholding obligations.

Is ESIGN consumer disclosure required?

Yes for consumer-facing transactions: provide an ESIGN disclosure, confirm the consumer can access electronic records, and offer a method to withdraw consent, per 15 U.S.C. §7001(c).

How long should I retain executed copies?

Retain executed arrangements for the active term plus applicable statutory periods. Follow IRS minimums (IRC §6501(a)) and industry rules such as HIPAA's six-year requirement (45 CFR §164.530(j)).

What to do if a signer disputes a charge?

Preserve the audit trail, invoices, and any communications. Follow contract dispute procedures, and consider negotiated resolution or mediation before litigation to limit costs.

Electronic Signature
Templates
Finance
Financial Fee Arrangement

Financial Fee Arrangement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

FINANCIAL FEE ARRANGEMENT

Parties and Effective Date

Client Name:

Financial Firm Name:

Effective Date:

Client Contact Information Firm Contact Information

Recitals

This Financial Fee Arrangement (the Agreement) sets forth the fees, billing procedures and related terms under which the Financial Firm will provide financial advisory, investment management, consulting or other professional services (collectively, Services) to the Client identified above.

Scope of Services

Describe Services

Fee Schedule

Select applicable fee structures (check all that apply):

Fixed Fee Hourly Fee Percentage of Assets Retainer Performance / Success Fee

Service Description	Fee Type	Rate / Amount	Billing Frequency	Estimated Monthly

Subtotal Estimate: Tax: Other Fees: Total Estimated:

Billing and Payment

Invoices will be issued by the Firm as described above and are due within days of receipt, unless otherwise agreed in writing. Client shall pay all undisputed fees in the currency invoiced.

Accepted payment methods (check all that apply):
Wire Transfer ACH Debit Check Credit Card

If payment by Wire/ACH required, provide account details or instructions

Late Payment: Unpaid amounts shall accrue interest at (or the maximum allowed by law) plus reasonable collection costs. Fees are non-refundable except as expressly stated in this Agreement.

Expenses

Client shall reimburse Firm for pre-approved, reasonable out-of-pocket expenses incurred in the performance of Services, including but not limited to: travel, third-party vendor fees, filing fees and courier charges. Reimbursement requests shall be accompanied by documentation and billed in the next invoice.

Expense Policy / Caps

Term, Termination and Suspension

This Agreement shall commence on the Effective Date and remain in effect until terminated by either party upon days' prior written notice. Firm may suspend Services for nonpayment after providing written notice and a day cure period.

Default, Remedies and Refunds

In the event of material breach, the non-breaching party may terminate the Agreement if the breaching party fails to cure the breach within days of written notice. Refunds of prepaid fees, if any, shall be pro rata for unperformed Services except where otherwise stated.

Confidentiality

Each party agrees to maintain the confidentiality of the other party’s non-public information and to use such information only for purposes of performing obligations under this Agreement. Confidential information does not include information that is publicly available, independently developed, or required to be disclosed by law, provided that the disclosing party is given prompt notice and assistance in seeking confidential treatment where permitted.

Representations, Warranties and Indemnification

Each party warrants that it has authority to enter into this Agreement. Client shall indemnify and hold Firm harmless from claims arising from Client’s failure to provide accurate information or from actions taken in reliance on the Client’s instructions, except to the extent caused by Firm’s gross negligence or willful misconduct.

Limitation of Liability; Remedies

Except for liability resulting from gross negligence, willful misconduct or breach of confidentiality obligations, each party’s aggregate liability under this Agreement shall not exceed the total fees paid to Firm by Client in the twelve (12) months preceding the claim. The parties agree that money damages are the exclusive remedy for breaches, except where injunctive relief is necessary to prevent imminent harm.

Governing Law and Dispute Resolution

This Agreement shall be governed by the laws of the state of without regard to its conflicts of law rules. The parties agree to attempt good faith negotiation of disputes; if unresolved, disputes shall be submitted to binding arbitration in accordance with commercially reasonable arbitration rules, unless the parties mutually agree otherwise in writing.

Notices

All notices shall be in writing and delivered to the addresses below by hand, certified mail or overnight courier and shall be effective upon receipt.

Client Notice Address Firm Notice Address

Miscellaneous

This Agreement constitutes the entire agreement between the parties with respect to its subject matter and supersedes all prior understandings. Any amendment must be in writing and signed by both parties. If any provision is held unenforceable, the remaining provisions shall remain in full force and effect.

Additional Terms or Special Instructions

Client:

By:

Date:

Financial Firm:

By:

Date:

What a Financial Fee Arrangement Is and when it applies

Financial Fee Arrangement is a written agreement that documents fees, billing terms, payment responsibilities, and related remedies between a service provider and a client. Typical contents include fee types (flat, hourly, contingency), billing frequency, invoicing procedures, late fees, reimbursements, and termination terms. In the United States these agreements are enforceable as contracts when parties demonstrate offer, acceptance, and consideration; electronic execution is generally valid under the ESIGN Act (15 U.S.C. ch. 96, 2000) and UETA where adopted, provided required disclosures and consent rules are met. Clear arrangements reduce disputes and support accounting and tax records.

Why a clear Financial Fee Arrangement matters

A clear Financial Fee Arrangement reduces billing disputes, documents recovery rights, and supports accurate tax and audit reporting. For consumer-facing agreements, ESIGN consumer-disclosure and consent requirements must be satisfied to preserve electronic-record validity. Accurate arrangements also help internal controls and vendor management.

Who typically prepares and signs these arrangements

Typical users include service providers, firms, and clients who need clear billing terms, documented consent, and audit-ready records for payments and disputes.

Independent contractors and consultants who bill hourly or project-based and require explicit payment terms.
Financial services teams and accounts payable groups that need standardized invoice acceptance and dispute procedures.
Legal and compliance teams that must document fee allocation, indemnities, and audit trails for reporting.

Use the arrangement whenever fees, variable charges, or reimbursement mechanics require written confirmation to avoid ambiguity and preserve evidence for accounting or legal review.

Who has authority to sign

CFO

The CFO or delegated finance officer signs on behalf of an organization to confirm budget approval, tax treatment, and internal control alignment. They ensure fee structures comply with accounting policies and that retention meets audit and tax requirements.

Client Rep

An authorized client representative or procurement officer signs to accept fees and billing schedules. This signer must confirm authority to bind the client and should receive ESIGN consumer-disclosure when consent is electronic.

Core sections of a professional Financial Fee Arrangement

These core sections define obligations, payment mechanics, dispute resolution, and administrative details that make fee arrangements enforceable and auditable.

Parties

Identify full legal names and contact details for each party, including billing addresses and remittance instructions to avoid identity or payment routing disputes.

Fee Schedule

List fee types, exact amounts or rates, basis for hourly or contingency calculations, and any caps or minimums to prevent ambiguity in invoicing.

Payment Terms

Specify due dates, accepted payment methods, late fee computations, interest rates, and payment dispute procedures to govern cash flow.

Reimbursements

Describe reimbursable expenses, required receipts or approvals, and any per-item or aggregate limits so costs are recoverable and documented.

Termination

Cover notice requirements, prorated fees on termination, and responsibilities for outstanding invoices to avoid post-termination disputes.

Compliance

Include governing law, tax reporting responsibilities, confidentiality, and any industry-specific addenda (for example HIPAA language in healthcare contexts).

Security and compliance controls to include

Encryption: TLS 1.2/1.3 and AES-256

Audit Trail: Immutable timestamp and IP logs

HIPAA BAA: BAA required for PHI

Access Controls: Role-based signer permissions

Retention Policy: Documented recordkeeping rules

Certifications: SOC 2 Type II, ISO 27001

Key legal and financial risks to avoid

1099 Penalties: $60–$330 per form

Intentional Disregard: $660+ per form

I-9 Violations: $281–$2,789 per violation

Contract Breach: Damages and attorney fees possible

Backup Withholding: 24% withholding rate

Evidence Gaps: Missing audit trail weakens enforcement

Common mistakes when preparing fee arrangements

Leaving fee descriptions vague (for example, 'reasonable fees') which causes interpretation disputes and increases litigation risk.
Failing to name the exact legal entity and remittance address, leading to payment routing errors and tax-reporting mismatches.
Neglecting consumer-facing ESIGN disclosures and consent steps when executing electronically, which can invalidate the electronic record.
Omitting retention or audit-trail requirements, making it difficult to prove the arrangement or resolve post-termination disagreements.

Step-by-step: prepare, approve, and execute the arrangement

Follow this sequence to create a clear, enforceable Financial Fee Arrangement and preserve electronic evidence when using e-signatures.

01

Gather details: Collect parties, addresses, and precise fee calculations.
02

Draft terms: Write fee schedule, payment methods, and late charges clearly.
03

Review and approve: Obtain internal sign-offs and legal or tax review as needed.
04

Execute: Sign electronically with consent and retain the audit trail.

Where to send and store executed fee arrangements

After execution, distribute copies to stakeholders and store records in systems that preserve audit trails and access controls.

Client Copy: Provide signed copy to client for their records.
Accounts Payable: Route to AP for invoice matching and payment.
Provider Records: Store in the provider's contract repository with version history.
Audit Archive: Retain secure archived copy for compliance and audits.

Digital workflow configuration checklist

Configure fields, authentication, and routing to match approval needs and legal requirements for electronic execution.

Field	Configuration
Signature method	Email link, SMS code, or stronger auth
Routing order	Sequential or parallel signer order
Notifications	Automated reminders and status updates
Storage	Secure repository with retention rules

Technical and integration considerations

Verify supported file formats, signer authentication options, and required integrations before configuring eSignature workflows.

File Formats: PDF, DOCX, and TIFF supported
Integrations: Salesforce, NetSuite, Microsoft 365
Authentication: Email, SMS, KBA, or SSO

Key deadlines and timing expectations

Understand payment, reporting, and tax-related deadlines associated with fee arrangements to avoid fines and preserve rights.

Invoice Due Date:

As specified in agreement; typical net 30 or net 45.

Late Fee Trigger:

Usually after grace period defined in contract.

1099-NEC Reporting:

File and furnish by Jan 31 each year.

Tax Return:

Corporation and individual filing dates may affect reporting.

Record Retention:

Keep records per retention policy and regulatory requirements.

Typical lifecycle milestones for a fee arrangement

This sequential view highlights key stages from negotiation through post-termination recordkeeping.

01

Negotiation

Define scope, fees, and billing mechanics before issuing the agreement.

02

Execution

Obtain signatures and record the execution timestamp and audit trail.

03

Invoicing

Issue invoices per schedule and monitor payment statuses.

04

Closeout

Reconcile final payments and retain records for compliance periods.

Comparison: common eSignature plans and capabilities

Vendor pricing and feature availability differ; signNow is listed first for comparison. Check vendor sites for exact plan features and billing terms.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies by plan	Varies by plan	Varies by plan	Varies by plan
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No cap	100 envelopes/user/year	Varies by plan	Varies by plan	Varies by plan

Frequently asked questions about Financial Fee Arrangements

Answers to common execution, compliance, and post-execution questions to reduce risk and ensure valid, auditable fee arrangements.

Need help? Contact support

Can this agreement be signed electronically?
Yes. Electronic signatures are generally enforceable under the ESIGN Act (15 U.S.C. ch. 96, 2000) and UETA where adopted, provided parties demonstrate intent, consent, attribution, and that records are retained and reproducible.
When is notarization required?
Most fee arrangements do not require notarization. Notarization is only necessary when a state statute or the parties require it, or when the document conveys or encumbers real property.
What happens if a name mismatches tax records?
A mismatched name or TIN can trigger backup withholding (24%) and 1099 reporting issues. Obtain correct legal names and TINs before payment to avoid IRS penalties and withholding obligations.
Is ESIGN consumer disclosure required?
Yes for consumer-facing transactions: provide an ESIGN disclosure, confirm the consumer can access electronic records, and offer a method to withdraw consent, per 15 U.S.C. §7001(c).
How long should I retain executed copies?
Retain executed arrangements for the active term plus applicable statutory periods. Follow IRS minimums (IRC §6501(a)) and industry rules such as HIPAA's six-year requirement (45 CFR §164.530(j)).
What to do if a signer disputes a charge?
Preserve the audit trail, invoices, and any communications. Follow contract dispute procedures, and consider negotiated resolution or mediation before litigation to limit costs.

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