A Side Agreement is commonly used in Saudi Arabian business transactions when parties need to modify or supplement terms of a main agreement without altering the original document. This document type is particularly relevant when dealing with sensitive commercial terms, regulatory requirements, or specific arrangements that warrant separate documentation. The Side Agreement must comply with Saudi Arabian law, including Shariah principles and commercial regulations, and typically includes provisions regarding the relationship to the main agreement, additional or modified terms, and specific arrangements between the parties. It's especially useful in complex commercial transactions where flexibility is needed or where certain terms need to be kept confidential or separate from the main agreement for commercial or regulatory reasons. The document must be carefully drafted to ensure enforceability within the Saudi legal framework while maintaining transparency and proper documentation of the parties' additional agreements.
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1. Parties: Identification of all parties to the side agreement (must match main agreement parties)
2. Background: Reference to main agreement and context for the side agreement
3. Definitions: Key terms used in the side agreement, incorporating relevant definitions from main agreement
4. Relationship to Main Agreement: Explicit statement of how this side agreement relates to and impacts the main agreement
5. Additional Terms: New or modified terms being introduced by the side agreement
6. Duration and Effect: Period of effectiveness and relationship to main agreement's term
7. Confidentiality: Provisions regarding disclosure of the side agreement's existence and terms
8. Governing Law and Jurisdiction: Confirmation of Saudi law application and relevant court jurisdiction
9. Execution: Signature blocks and execution requirements compliant with Saudi law
1. Consideration: Include when the side agreement involves additional payment or value exchange
2. Representations and Warranties: Include when parties need to make additional confirmations specific to the side agreement
3. Shariah Compliance: Include explicit confirmation of Shariah compliance when dealing with financial matters
4. Third Party Rights: Include when the side agreement affects rights of parties not directly involved
5. Notices: Include when specific notification requirements differ from main agreement
6. Force Majeure: Include when force majeure provisions differ from main agreement
7. Assignment: Include when transfer rights need to be specifically addressed
8. Dispute Resolution: Include when dispute resolution process differs from main agreement
1. Schedule 1 - Main Agreement Extract: Relevant excerpts from main agreement being modified
2. Schedule 2 - Modified Terms: Detailed listing of specific terms being modified or added
3. Schedule 3 - Payment Terms: If applicable, detailed payment or consideration arrangements
4. Schedule 4 - Required Approvals: List of any regulatory or third-party approvals required
5. Appendix A - Form of Notices: Template for required notifications under the side agreement
6. Appendix B - Compliance Certificates: Required compliance documentation including Shariah compliance if applicable
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