Business Development Commission Agreement Template for Saudi Arabia

The Business Development Commission Agreement is essential for companies seeking to expand their business presence in Saudi Arabia through third-party business developers or agents. This document is particularly relevant in the context of Saudi Arabia's evolving commercial landscape and must comply with both the Kingdom's Commercial Agencies Law and Shariah principles. It is typically used when a company wishes to engage an external party to develop business opportunities in return for commission-based compensation. The agreement includes crucial elements such as territory definitions, commission structures, performance metrics, compliance requirements, and reporting obligations. It serves as a comprehensive framework for managing the business development relationship while ensuring legal compliance with Saudi regulations regarding commercial agency relationships, anti-corruption laws, and tax requirements.

1. Parties: Identification of the principal company and the business developer, including full legal names, registration details, and addresses

2. Background: Context of the agreement, business objectives, and general intent of the parties

3. Definitions: Key terms used throughout the agreement, including 'Territory', 'Services', 'Commission', 'Qualified Leads', etc.

4. Appointment and Scope: Terms of appointment, exclusivity/non-exclusivity, and detailed scope of business development services

5. Term and Termination: Duration of the agreement, renewal terms, and circumstances for termination

6. Business Developer's Obligations: Specific duties, performance standards, reporting requirements, and compliance obligations

7. Principal's Obligations: Support, materials, and information to be provided by the principal company

8. Commission Structure: Calculation method, payment terms, and conditions for commission eligibility

9. Performance Targets: Minimum performance requirements and KPIs

10. Confidentiality: Protection of confidential information and trade secrets

11. Non-Competition and Non-Solicitation: Restrictions on competitive activities and client solicitation

12. Compliance with Laws: Obligations to comply with Saudi laws, anti-corruption regulations, and Shariah principles

13. Dispute Resolution: Process for resolving disputes, applicable law, and jurisdiction

14. General Provisions: Standard clauses including force majeure, notices, assignment, and entire agreement