The Fee Share Agreement is a crucial document for businesses operating in Saudi Arabia who wish to establish formal arrangements for sharing professional fees or commissions. This agreement type is commonly used when parties collaborate on providing services or referring business to each other, requiring a clear framework for fee distribution that complies with both Sharia law and Saudi Arabian commercial regulations. The document addresses key aspects such as fee calculation methods, payment terms, compliance with Islamic financial principles, and regulatory requirements. It's particularly important in professional services, financial services, and business intermediary relationships where fee sharing is a common practice. The agreement ensures transparency, defines responsibilities, and provides legal protection while maintaining compliance with local laws and religious requirements.
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Key Requirements PROMPT example:
Fee Share Agreement
"I need a Fee Share Agreement for my consulting firm in Riyadh to establish a 60/40 fee split arrangement with a strategic partner for client referrals, including quarterly payment terms and compliance with Sharia law."
1. Parties: Identification of all parties to the agreement, including their full legal names, addresses, and registration details
2. Background: Context of the agreement, relationship between parties, and purpose of the fee-sharing arrangement
3. Definitions: Definitions of key terms used throughout the agreement
4. Scope of Agreement: Detailed description of the services or activities covered by the fee-sharing arrangement
5. Fee Structure: Detailed breakdown of how fees will be calculated, shared, and distributed between parties
6. Payment Terms: Timeline and method of fee payments, including currency, payment methods, and payment periods
7. Obligations of the Parties: Specific duties and responsibilities of each party under the agreement
8. Compliance Requirements: Obligations regarding Sharia compliance, regulatory requirements, and applicable laws
9. Record Keeping: Requirements for maintaining financial records and documentation
10. Confidentiality: Provisions regarding confidential information and its protection
11. Term and Termination: Duration of the agreement and circumstances under which it can be terminated
12. Dispute Resolution: Process for resolving disputes, including reference to Saudi courts or arbitration
13. Governing Law: Specification of Saudi law and Sharia principles as governing law
1. Non-Compete: Restrictions on competitive activities, included when parties operate in the same industry
2. Intellectual Property: IP rights and usage terms, needed when shared activities involve intellectual property
3. Insurance: Insurance requirements, included when activities carry significant risks
4. Force Majeure: Provisions for unforeseen circumstances, optional but recommended
5. Assignment: Rights and restrictions regarding transfer of agreement rights, included for longer-term arrangements
6. Marketing and Branding: Guidelines for using each other's brands, needed when public association exists
7. Compliance with Anti-Money Laundering: Detailed AML provisions, required for financial service arrangements
1. Schedule 1 - Fee Calculation Method: Detailed methodology for calculating shared fees
2. Schedule 2 - Payment Procedures: Step-by-step process for fee collection and distribution
3. Schedule 3 - Service Level Agreement: Performance metrics and service standards if applicable
4. Schedule 4 - Compliance Checklist: List of regulatory and Sharia compliance requirements
5. Appendix A - Required Documentation: List of documents required for fee processing and compliance
6. Appendix B - Authorized Representatives: List of persons authorized to act on behalf of each party
7. Appendix C - Reporting Ƶ: Standard formats for financial and operational reporting
Authors
Relevant legal definitions
Clauses
Relevant Industries
Legal Services
Financial Services
Professional Services
Real Estate
Business Consulting
Investment Banking
Insurance
Healthcare
Education
Commercial Agency
Relevant Teams
Legal
Finance
Compliance
Business Development
Operations
Risk Management
Commercial
Partner Relations
Strategic Alliances
Contract Administration
Relevant Roles
Managing Partner
Chief Financial Officer
Legal Counsel
Compliance Officer
Business Development Manager
Finance Director
Commercial Director
Operations Manager
Partnership Manager
Relationship Manager
Risk Manager
Contract Administrator
Professional Services Director
Regional Manager
Strategic Alliance Manager
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