Exclusive Management Agency Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Exclusive Management Agency Agreement

"I need an Exclusive Management Agency Agreement for appointing a Saudi agent to manage our technology services business in Riyadh and Eastern Province, starting March 2025, with strict performance metrics and quarterly reviews."

Document background
The Exclusive Management Agency Agreement is essential for businesses seeking to establish formal management representation in Saudi Arabia through an exclusive agent. This document is particularly relevant when a company needs local expertise or wishes to delegate management authority while maintaining control over their business interests. The agreement must comply with Saudi Arabian Commercial Agency Law and Sharia principles, making it distinct from similar agreements in other jurisdictions. It typically includes detailed provisions for scope of authority, territorial rights, compensation, performance metrics, and compliance requirements. This type of agreement is commonly used when entering the Saudi market, restructuring existing operations, or establishing new business relationships that require professional management services with exclusive territorial rights.
Suggested Sections

1. Parties: Identification of the Principal and the Management Agent, including full legal names, addresses, and commercial registration details

2. Background: Context of the agreement, business objectives, and confirmation of Agent's capabilities

3. Definitions: Key terms used throughout the agreement, including Territory, Services, Exclusivity Period, etc.

4. Appointment and Scope: Express appointment of Agent, confirmation of exclusivity, and detailed scope of management authority

5. Territory and Exclusivity: Definition of geographical area and extent of exclusive rights

6. Duration and Term: Initial term, renewal provisions, and conditions for extension

7. Agent's Rights and Obligations: Comprehensive list of Agent's responsibilities, powers, and service standards

8. Principal's Rights and Obligations: Principal's duties, support obligations, and information provision requirements

9. Compensation: Fee structure, payment terms, expenses, and calculation methods

10. Reporting and Accountability: Regular reporting requirements, performance metrics, and monitoring procedures

11. Intellectual Property Rights: Usage rights for trademarks, trade names, and other IP during the agreement

12. Confidentiality: Protection of confidential information and trade secrets

13. Non-Competition and Non-Solicitation: Restrictions during and post-agreement term

14. Termination: Grounds for termination, notice requirements, and consequences

15. Post-Termination Obligations: Duties and restrictions following agreement end

16. Governing Law and Jurisdiction: Confirmation of Saudi law application and dispute resolution mechanisms

17. General Provisions: Standard clauses including force majeure, notices, amendments, etc.

Optional Sections

1. Compliance with Islamic Law: Specific provisions ensuring Sharia compliance, required when any financing or interest elements are involved

2. Sub-Agents: Rules for appointment of sub-agents, needed if sub-delegation of duties is contemplated

3. Insurance: Insurance requirements and obligations, important for high-risk activities

4. Performance Guarantees: Bank guarantees or other security provisions, useful for high-value agreements

5. Training and Support: Details of training provided by Principal, relevant for technical or specialized services

6. Digital Services: Provisions for online or digital service delivery, needed for technology-based services

7. Force Majeure Specifics: Detailed force majeure provisions, important in volatile regions or sensitive industries

8. Data Protection: Specific data handling requirements, necessary when personal data processing is involved

Suggested Schedules

1. Schedule 1 - Services Description: Detailed description of management services to be provided

2. Schedule 2 - Territory Map and Details: Geographical boundaries and any excluded areas within territory

3. Schedule 3 - Fee Structure and Calculations: Detailed breakdown of fees, commissions, and payment calculations

4. Schedule 4 - Performance Metrics: KPIs, targets, and measurement methodologies

5. Schedule 5 - Reporting Templates: Standard forms and templates for required reports

6. Schedule 6 - Authorized Representatives: List of key personnel and their authority levels

7. Schedule 7 - Operating Procedures: Day-to-day operational guidelines and procedures

8. Appendix A - Required Licenses and Permits: Copies or lists of required regulatory approvals

9. Appendix B - Power of Attorney: Format of power of attorney if required for agent's duties

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 | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Retail

Manufacturing

Real Estate

Hospitality

Healthcare

Technology Services

Construction

Professional Services

Consumer Goods

Industrial Equipment

Automotive

Energy

Telecommunications

Education

Financial Services

Relevant Teams

Legal

Compliance

Commercial

Business Development

Operations

Sales

Strategic Planning

Corporate Development

Risk Management

Finance

International Business

Relevant Roles

Chief Executive Officer

Managing Director

Commercial Director

Business Development Manager

Legal Counsel

Compliance Officer

Operations Manager

Country Manager

Regional Director

Contract Manager

Agency Relations Manager

Business Owner

General Manager

Sales Director

Strategic Partnerships Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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