Intermediary Fee Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Intermediary Fee Agreement

"I need an Intermediary Fee Agreement for appointing a local Saudi agent to help secure government contracts in the defense sector, with a 5% success fee structure and strict compliance provisions, starting from March 2025."

Document background
The Intermediary Fee Agreement is essential for businesses operating in Saudi Arabia where intermediaries play a crucial role in facilitating commercial relationships and market entry. This document is particularly important given Saudi Arabia's unique business environment and regulatory framework, which often requires local expertise and connections. The agreement must comply with various Saudi regulations including the Commercial Agency Law, Anti-Commercial Concealment Law, and Sharia principles. It typically includes detailed provisions on service scope, fee structures, compliance requirements, and regulatory obligations. The document is commonly used when engaging local representatives, consultants, or agents to assist with business development, government relations, or market access in Saudi Arabia, and must carefully balance international business practices with local legal requirements.
Suggested Sections

1. Parties: Identification of the Principal and the Intermediary with full legal names and addresses

2. Background: Context of the agreement, relationship between parties, and purpose of the intermediary arrangement

3. Definitions: Key terms used throughout the agreement including 'Services', 'Territory', 'Target Business', 'Success Fee', etc.

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

5. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

6. Fees and Payment Terms: Structure of fees, payment schedules, currency, and payment methods compliant with Saudi regulations

7. Obligations of the Intermediary: Detailed responsibilities, performance standards, and compliance requirements

8. Obligations of the Principal: Support, information, and resources to be provided by the principal

9. Compliance and Anti-corruption: Compliance with Saudi laws, anti-bribery provisions, and regulatory requirements

10. Confidentiality: Protection of confidential information and trade secrets

11. Governing Law and Jurisdiction: Specification of Saudi law as governing law and jurisdiction for disputes

12. Miscellaneous: Standard provisions including force majeure, notices, and amendments

Optional Sections

1. Success Fee Structure: Detailed terms for success-based compensation, used when fee includes performance-based elements

2. Regulatory Registrations: Requirements for commercial agency registration, needed if arrangement falls under agency law

3. Islamic Finance Compliance: Specific provisions ensuring Sharia compliance, required for certain financial arrangements

4. Intellectual Property: IP protection clauses, needed when intermediary will handle proprietary information

5. Non-Competition: Restrictions on competing activities, used when exclusivity is required

6. Insurance: Insurance requirements, included when services involve significant risks

7. Training and Support: Details of training provided to intermediary, needed for complex service arrangements

Suggested Schedules

1. Schedule 1 - Services Description: Detailed description of intermediary services and deliverables

2. Schedule 2 - Fee Structure: Detailed breakdown of fees, including calculations and payment milestones

3. Schedule 3 - Territory Definition: Geographic scope of the intermediary's authority

4. Schedule 4 - Compliance Requirements: Specific compliance obligations and reporting requirements

5. Schedule 5 - Key Performance Indicators: Performance metrics and evaluation criteria

6. Appendix A - Required Forms: Standard forms for service reports, invoicing, and compliance certification

7. Appendix B - Power of Attorney: If required, formal authorization of intermediary's authority

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

Clauses
Relevant Industries

Oil & Gas

Construction

Healthcare

Technology

Defense

Manufacturing

Financial Services

Real Estate

Infrastructure

Telecommunications

Professional Services

Retail

Education

Transport & Logistics

Relevant Teams

Legal

Commercial

Business Development

Compliance

Finance

Operations

Risk Management

Corporate Secretariat

Strategy

Sales

Government Relations

International Business

Relevant Roles

Legal Counsel

Commercial Director

Business Development Manager

Compliance Officer

Chief Financial Officer

Contracts Manager

General Manager

Country Manager

Sales Director

Operations Director

Risk Manager

Corporate Secretary

Commercial Agency Manager

Strategy Director

Regional Director

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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