Cha & Kwon Law Offices advised on a performance compensation agreement to be entered into between a virtual asset trading platform and an individual, and prepared an agreement reflecting an individual compensation structure operated independently from a separate corporate partnership agreement.
 
The agreement was structured to provide the individual with a certain percentage of the revenues generated by the platform from transactions conducted by users introduced through a business partner. Accordingly, the key issues included distinguishing the individual performance compensation from other partnership arrangements, setting the criteria for calculating compensation, clarifying the independence of the individual’s contractual status from any affiliated entity, and determining whether compensation rights would continue after termination of the agreement.
 
Cha & Kwon Law Offices specified the basis for calculating compensation by reference to users’ trading performance and related revenues, while clearly identifying excluded items such as trading fees. We also clarified that the individual was entering into the agreement in an independent personal capacity, rather than acting on behalf of an affiliated corporation. In addition, the agreement was structured so that, even after termination, the individual’s right to compensation would continue within a defined scope with respect to revenues generated from users previously introduced to the platform.
 
Cha & Kwon Law Offices provides contract drafting advisory services for structures where corporate partnership arrangements and individual performance compensation coexist in relation to virtual asset trading platforms, by clearly distinguishing each contractual relationship and source of payment, and by specifying the calculation, payment, and survival conditions of compensation.