Ƶ

All Countries
Corporate Governance
Director Profit Sharing Agreement

Director Profit Sharing Agreement Template for Saudi Arabia

Create a bespoke document in minutes,  or upload and review your own.

4.6 / 5
4.8 / 5

Let's create your Director Profit Sharing Agreement

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Get your first 2 documents free

Your data doesn't train Genie's AI

You keep IP ownership of your information

Key Requirements PROMPT example:

Director Profit Sharing Agreement

"I need a Director Profit Sharing Agreement for a Saudi-based technology company, where the director will receive 2% of net profits quarterly, starting March 2025, with additional provisions for international operations and compliance with both Saudi Companies Law and Shariah principles."

Celebrated by
Collaborations with
Investors
Document background
The Director Profit Sharing Agreement is a crucial document used in Saudi Arabian companies to establish a performance-based compensation structure for directors that aligns with both corporate objectives and regulatory requirements. This agreement is particularly relevant when companies wish to incentivize directors through profit-sharing mechanisms while ensuring compliance with Saudi Companies Law, Capital Market Authority regulations, and Shariah principles. The document typically becomes necessary during director appointments, corporate restructuring, or when implementing new compensation schemes. It addresses key aspects such as profit calculation methodologies, payment terms, performance metrics, and regulatory compliance requirements, while providing necessary safeguards for both the company and the director.
Suggested Sections

1. Parties: Identification of the Company and the Director

2. Background: Context of the agreement and Director's role

3. Definitions: Key terms used throughout the agreement

4. Appointment and Term: Terms of directorship and duration

5. Director's Duties and Responsibilities: Core obligations and responsibilities

6. Profit Sharing Structure: Detailed mechanism for calculating and distributing profits

7. Payment Terms: Timing and method of profit share payments

8. Performance Metrics: Criteria for measuring performance linked to profit sharing

9. Compliance Requirements: Regulatory and Shariah compliance obligations

10. Confidentiality: Protection of company information

11. Non-Competition: Restrictions on competing activities

12. Termination: Circumstances and process for ending the agreement

13. Governing Law: Application of Saudi law and Shariah principles

14. Dispute Resolution: Process for resolving disagreements

Optional Sections

1. Change of Control: Provisions applying if company ownership changes significantly

2. International Operations: Additional provisions for directors overseeing international business

3. Intellectual Property: IP rights and obligations, if relevant to director's role

4. Insurance and Indemnification: Additional protection for high-risk activities

5. Shariah Compliance Declaration: Specific declaration for companies requiring explicit Shariah compliance

6. Multiple Directorship Provisions: For directors serving on multiple boards within group companies

Suggested Schedules

1. Schedule 1: Profit Calculation Methodology: Detailed formula and examples for profit calculation

2. Schedule 2: Performance Metrics and KPIs: Detailed performance criteria and measurement methods

3. Schedule 3: Payment Schedule: Timing and structure of payments

4. Schedule 4: Company's Corporate Governance Code: Relevant excerpts from company's governance policies

5. Schedule 5: Compliance Checklist: Required regulatory and Shariah compliance requirements

6. Appendix A: Board Resolution: Copy of board resolution approving the profit sharing arrangement

7. Appendix B: Shariah Advisory Opinion: If applicable, opinion confirming Shariah compliance

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions














































Clauses




































Relevant Industries

Financial Services

Real Estate Development

Manufacturing

Technology

Healthcare

Energy

Retail

Professional Services

Construction

Telecommunications

Relevant Teams

Legal

Human Resources

Finance

Compliance

Corporate Governance

Company Secretariat

Executive Management

Board Secretariat

Internal Audit

Risk Management

Relevant Roles

Board Director

Executive Director

Managing Director

Chief Executive Officer

Non-Executive Director

Independent Director

Chairman

Vice Chairman

Regional Director

Division 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

Find the exact document you need

Director Indemnity Agreement

A Saudi Arabian law-governed agreement providing indemnification protection for company directors against liabilities and expenses incurred in their official capacity.

find out more

Medical Director Contract Agreement

A Saudi Arabian law-governed agreement establishing terms and conditions for a Medical Director's employment, including clinical and administrative responsibilities.

find out more

Spa Medical Director Agreement

A Saudi Arabian law-governed agreement establishing terms for medical director oversight of spa facilities, including clinical governance and regulatory compliance requirements.

find out more

Executive Director Agreement

A Saudi Arabian law-governed agreement establishing terms and conditions for executive director appointments, including duties, compensation, and regulatory compliance requirements.

find out more

Director Indemnification Agreement

A Saudi Arabian law-governed agreement establishing the terms for company indemnification of directors against claims and losses arising from their board service.

find out more

Director Appointment Agreement

A Saudi Arabian law-governed agreement establishing the terms and conditions for appointing a director to a company's board, ensuring compliance with local corporate and regulatory requirements.

find out more

Director Profit Sharing Agreement

A Saudi Arabian law-governed agreement establishing profit sharing arrangements between a company and its director, compliant with local regulations and Shariah principles.

find out more

Independent Director Agreement

A Saudi Arabian law-governed agreement establishing terms and conditions for appointing an independent director, ensuring compliance with local corporate governance requirements.

find out more

Directors Loan Agreement

A Sharia-compliant agreement under Saudi Arabian law governing loan arrangements between a company and its director, including terms, conditions, and compliance requirements.

find out more

Managing Director Contract Of Employment

A Saudi Arabian law-governed employment contract for appointing a Managing Director, outlining key terms and conditions while ensuring compliance with local regulations.

find out more

Company Director Agreement

A Saudi law-governed agreement establishing the terms and conditions for a director's appointment to a company's board, including duties, responsibilities, and remuneration.

find out more

Non Executive Director Agreement

A Saudi Arabian law-governed agreement establishing terms and conditions for Non-Executive Director appointments, including duties, remuneration, and regulatory compliance requirements.

find out more

Directors Service Agreement

A Saudi law-governed agreement establishing terms and conditions for director appointments, including duties, remuneration, and compliance requirements.

find out more

Download our whitepaper on the future of AI in Legal

By providing your email address you are consenting to our Privacy Notice.
Thank you for downloading our whitepaper. This should arrive in your inbox shortly. In the meantime, why not jump straight to a section that interests you here: /our-research
Oops! Something went wrong while submitting the form.

ұԾ’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; ұԾ’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

Our bank-grade security infrastructure undergoes regular external audits

We are ISO27001 certified, so your data is secure

Organizational security

You retain IP ownership of your documents

You have full control over your data and who gets to see it

Innovation in privacy:

Genie partnered with the Computational Privacy Department at Imperial College London

Together, we ran a £1 million research project on privacy and anonymity in legal contracts

Want to know more?

Visit our for more details and real-time security updates.

Read our Privacy Policy.