Success Fee Agreement Template for Saudi Arabia

Success Fee Agreements are instrumental in business relationships where compensation is tied to specific achievements or outcomes. This document type is particularly relevant in Saudi Arabia's evolving commercial landscape, where it must align with both Sharia principles and modern business practices. The Success Fee Agreement typically outlines the scope of services, defines precise success criteria, and establishes the fee calculation methodology. It's commonly used in advisory services, corporate transactions, real estate deals, and investment arrangements where the service provider's compensation is contingent upon achieving specific results. The agreement must carefully navigate Saudi Arabian legal requirements, including compliance with Islamic finance principles, while providing clear, enforceable terms for all parties involved. Key considerations include avoiding excessive uncertainty in success criteria, ensuring transparency in fee calculations, and maintaining alignment with local commercial regulations and Vision 2030 objectives.

1. Parties: Identification of the parties entering into the agreement, including full legal names and addresses

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

3. Definitions: Key terms used throughout the agreement, including definition of 'Success' and measurement criteria

4. Scope of Services: Detailed description of services to be provided by the service provider

5. Success Criteria: Clear, measurable criteria that constitute 'success' and trigger the fee payment

6. Fee Structure: Detailed explanation of how the success fee is calculated and when it becomes payable

7. Payment Terms: Timeline and method of payment, including any verification procedures

8. Obligations of the Parties: Specific duties and responsibilities of each party

9. Term and Termination: Duration of the agreement and circumstances for early termination

10. Confidentiality: Protection of confidential information exchanged during the engagement

11. Governing Law and Jurisdiction: Confirmation of Saudi law application and dispute resolution mechanism

12. Force Majeure: Provisions for unforeseen circumstances affecting performance

13. Notices: Method and addresses for formal communications between parties