Origination and Compensation Clause Samples

The "Origination and Compensation" clause defines how credit for originating business or clients is assigned and how related compensation is distributed among parties. Typically, this clause outlines the criteria for determining who is recognized as the originator of a client or matter, and specifies the method or formula for allocating fees, bonuses, or commissions resulting from that origination. Its core function is to ensure transparency and fairness in rewarding individuals or entities responsible for bringing in new business, thereby reducing disputes and incentivizing business development.