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Fundraising Commission Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

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."

Document background
The Fundraising Commission Agreement is essential for companies seeking to raise capital in Saudi Arabia through professional fundraising agents or brokers. This document is typically used when a company wishes to engage external expertise to secure investments, whether through private placement, venture capital, or other funding mechanisms. The agreement must comply with Saudi Arabian regulations, including CMA requirements and relevant financial services laws. It details commission structures, payment triggers, compliance requirements, and service scope while incorporating necessary provisions for Islamic finance principles where applicable. The document serves as a crucial framework for protecting both parties' interests while ensuring transparent and compliant fundraising activities in the Saudi Arabian market.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

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

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Relevant Industries

Financial Services

Private Equity

Investment Banking

Real Estate Development

Technology

Healthcare

Infrastructure

Energy

Manufacturing

Professional Services

Relevant Teams

Legal

Finance

Compliance

Business Development

Corporate Development

Treasury

Risk Management

Investment Relations

Corporate Affairs

Executive Management

Relevant Roles

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

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

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