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Referral Partner Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Referral Partner Agreement

"I need a Referral Partner Agreement for my software company based in Riyadh, specifically for partners who will refer enterprise clients in the GCC region, with a tiered commission structure starting from January 2025."

Document background
The Referral Partner Agreement is essential for businesses operating in Saudi Arabia who wish to expand their market reach through formal referral partnerships. This document is particularly crucial in the Saudi Arabian context due to specific regulatory requirements under the Commercial Agencies Law and Anti-Commercial Concealment Law. The agreement defines the relationship between a Principal Company and a Referral Partner, establishing clear parameters for lead generation, customer referrals, and commission payments. It includes necessary provisions to ensure compliance with Saudi Arabian commercial regulations, data protection laws, and anti-fraud measures. The document is typically used when companies want to create a formal referral network while maintaining control over their customer relationships and ensuring transparent business practices in accordance with local laws.
Suggested Sections

1. Parties: Identification of the principal company and the referral partner, including full legal names, commercial registration numbers, and addresses

2. Background: Context of the agreement and brief description of the parties' business activities and intention to enter into a referral relationship

3. Definitions: Key terms used throughout the agreement, including 'Referral', 'Qualified Lead', 'Services', 'Territory', and 'Commission'

4. Appointment and Scope: Terms of the referral partner's appointment, scope of authority, and territorial limitations

5. Referral Process: Detailed procedure for making referrals, qualifying leads, and tracking referral sources

6. Commission Structure: Commission rates, calculation methods, payment terms, and conditions for commission eligibility

7. Obligations of the Parties: Specific duties and responsibilities of both the principal company and the referral partner

8. Compliance Requirements: Obligations to comply with Saudi laws, including anti-fraud, commercial concealment, and data protection requirements

9. Confidentiality: Protection of confidential information and trade secrets shared between parties

10. Term and Termination: Duration of the agreement, renewal terms, and grounds for termination

11. Non-Solicitation and Non-Competition: Restrictions on soliciting customers, employees, or competing directly with the principal company

12. Governing Law and Dispute Resolution: Application of Saudi law and mechanism for resolving disputes

Optional Sections

1. Training and Support: Details of training and support provided to the referral partner, used when the principal company offers specific training programs

2. Marketing and Branding: Guidelines for using the principal company's brand and marketing materials, included when the partner will engage in marketing activities

3. Performance Targets: Specific referral targets and performance metrics, used when implementing performance-based incentives

4. Insurance Requirements: Specific insurance coverage requirements for the referral partner, included for high-risk industries or services

5. Data Protection Protocol: Detailed procedures for handling personal data, required when extensive customer data sharing is involved

6. Shariah Compliance: Specific provisions ensuring compliance with Islamic law principles, used when relevant to the industry or services

7. Force Majeure: Provisions for unforeseen circumstances preventing performance, included for longer-term or high-value agreements

Suggested Schedules

1. Commission Structure Schedule: Detailed breakdown of commission rates, tiers, and special incentives

2. Referral Process Workflow: Step-by-step guide and flowchart of the referral process

3. Approved Products/Services: List of products or services eligible for referral

4. Territory Definition: Detailed description or map of the authorized territory for referrals

5. Reporting Templates: Standard forms for referral submissions and tracking

6. Contact Details: Key contact persons and escalation matrix for both parties

7. Compliance Checklist: Checklist of regulatory requirements and compliance procedures

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

Relevant legal definitions






























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Relevant Industries

Financial Services

Information Technology

Professional Services

Real Estate

Healthcare

Education

Telecommunications

Management Consulting

Industrial Services

Construction

Legal Services

Insurance

Relevant Teams

Legal

Business Development

Sales

Compliance

Commercial

Partner Operations

Revenue Operations

Contract Administration

Finance

Partner Success

Relevant Roles

Business Development Manager

Sales Director

Channel Partner Manager

Legal Counsel

Compliance Officer

Commercial Director

Partnership Manager

Chief Revenue Officer

Sales Operations Manager

Account Executive

Business Development Director

Chief Executive Officer

Chief Commercial Officer

Regional Sales Manager

Partner Success 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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