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Fundraising Commission Agreement
"I need a Fundraising Commission Agreement for my Saudi tech startup that includes a tiered commission structure with a 2% base rate and 5% success fee for funds raised above SAR 10 million, with the agreement starting March 1, 2025."
1. Parties: Identification of the company seeking funds and the fundraising agent/broker
2. Background: Context of the agreement, including the company's fundraising objectives
3. Definitions: Key terms used throughout the agreement, including financial and regulatory terminology
4. Appointment and Scope: Terms of appointment and detailed scope of fundraising services
5. Obligations of the Agent: Duties, responsibilities, and conduct requirements for the fundraising agent
6. Company's Obligations: Responsibilities of the company, including provision of information and support
7. Commission Structure: Detailed breakdown of commission rates, calculation methods, and triggers for payment
8. Payment Terms: Timing and method of commission payments, including any conditions precedent
9. Compliance Requirements: Regulatory compliance obligations and required approvals
10. Representations and Warranties: Standard and specific warranties from both parties
11. Confidentiality: Protection of confidential information and trade secrets
12. Term and Termination: Duration of agreement and grounds for termination
13. General Provisions: Standard boilerplate clauses including governing law, notices, and assignment
1. Shariah Compliance: Required when fundraising activities need to comply with Islamic finance principles
2. Exclusivity: Include when the agent is granted exclusive fundraising rights
3. International Provisions: Required when fundraising activities extend beyond Saudi Arabia
4. Success Fee Structure: Optional additional commission structure based on achieving specific targets
5. Non-Compete: Include when restricting agent's ability to work with competitors
6. Force Majeure: Optional clause for unforeseen circumstances affecting performance
7. Data Protection: Required when handling personal data of potential investors
1. Commission Rates Schedule: Detailed breakdown of commission rates for different types of investments/investors
2. Target Investor Profile: Specifications of qualified investors and investment criteria
3. Required Documents: List of documentation needed for regulatory compliance and due diligence
4. Reporting Templates: Standard formats for progress reports and investor communications
5. Compliance Checklist: Regulatory requirements and compliance procedures
6. Marketing Guidelines: Approved approaches and restrictions for fundraising activities
7. Power of Attorney: If required, formal authorization for the agent to act on behalf of the company
Authors
Financial Services
Private Equity
Investment Banking
Real Estate Development
Technology
Healthcare
Infrastructure
Energy
Manufacturing
Professional Services
Legal
Finance
Compliance
Business Development
Corporate Development
Treasury
Risk Management
Investment Relations
Corporate Affairs
Executive Management
Chief Financial Officer
Investment Director
Legal Counsel
Compliance Officer
Business Development Manager
Finance Manager
Investment Relations Manager
Managing Director
Chief Executive Officer
Fund Manager
Corporate Finance Director
Business Development Director
Treasury Manager
Company Secretary
Risk Manager
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