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Revenue Share Partnership Agreement for Saudi Arabia

Revenue Share Partnership Agreement Template for Saudi Arabia

A comprehensive legal agreement governed by Saudi Arabian law that establishes the terms and conditions for a revenue sharing partnership between two or more parties. The document outlines the mechanism for sharing revenues generated from business activities, including calculation methods, payment terms, and operational responsibilities. It incorporates provisions compliant with Saudi commercial law and Sharia principles, covering aspects such as profit distribution, risk allocation, and dispute resolution. The agreement includes detailed financial reporting requirements, governance structures, and termination provisions, all aligned with Saudi Arabian legal requirements and business practices.

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What is a Revenue Share Partnership Agreement?

The Revenue Share Partnership Agreement is a vital legal instrument used in Saudi Arabia when two or more parties wish to collaborate in a business venture where revenues will be shared according to predetermined terms. This document is particularly relevant in the context of Saudi Arabia's Vision 2030 initiatives and the kingdom's growing emphasis on private sector partnerships. It provides a framework for revenue sharing arrangements while ensuring compliance with both Saudi commercial law and Sharia principles. The agreement is commonly used in various scenarios including technology partnerships, distribution arrangements, and service provision collaborations. It addresses key aspects such as revenue calculation methods, payment mechanisms, governance structures, and dispute resolution procedures, while incorporating necessary provisions to meet Saudi regulatory requirements.

What sections should be included in a Revenue Share Partnership Agreement?

1. Parties: Identification of all parties to the agreement, including their legal status and registration details

2. Background: Context of the partnership and purpose of the revenue sharing arrangement

3. Definitions and Interpretation: Detailed definitions of key terms, including 'Revenue', 'Net Revenue', 'Gross Revenue', 'Partnership' and interpretation rules

4. Partnership Structure: Legal structure of the partnership and relationship between parties

5. Revenue Sharing Terms: Detailed mechanics of revenue sharing, including calculation methods, payment periods, and revenue recognition principles

6. Operational Responsibilities: Each party's roles, duties, and contributions to the partnership

7. Financial Records and Reporting: Requirements for financial reporting, audit rights, and record-keeping obligations

8. Payment Terms: Payment mechanics, currency, payment methods, and timing of distributions

9. Governance: Decision-making processes, management structure, and voting rights

10. Representations and Warranties: Standard and specific representations and warranties from each party

11. Term and Termination: Duration of the agreement and grounds for termination

12. Confidentiality: Protection of confidential information and trade secrets

13. Dispute Resolution: Mechanisms for resolving disputes, including jurisdiction and governing law

14. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment

What sections are optional to include in a Revenue Share Partnership Agreement?

1. Intellectual Property Rights: Required when the partnership involves creation, use, or licensing of intellectual property

2. Non-Competition: Include when parties agree to restrictions on competing activities

3. Marketing and Branding: Necessary when the partnership involves joint branding or marketing activities

4. Force Majeure: Include specific force majeure provisions for high-risk or long-term partnerships

5. Compliance with Sharia: Required when parties specifically want to ensure Sharia compliance

6. Tax and Zakat: Detailed tax provisions needed for complex cross-border arrangements

7. Change of Control: Include for partnerships where ownership stability is crucial

8. Exit Rights: Required for partnerships with specific exit mechanisms or buy-out rights

What schedules should be included in a Revenue Share Partnership Agreement?

1. Revenue Calculation Methodology: Detailed formula and examples of revenue calculations and adjustments

2. Business Plan: Initial business plan and revenue projections

3. Key Performance Indicators: Metrics for measuring partnership performance

4. Reporting Templates: Standard forms for financial and operational reporting

5. Bank Account Details: Designated accounts for revenue collection and distribution

6. Authorized Representatives: List of key contacts and authorized signatories

7. Compliance Requirements: Specific regulatory and Sharia compliance requirements

8. Initial Capital Contributions: Details of any initial investments or contributions by parties

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

Jurisdiction

Saudi Arabia

Publisher

Ƶ

Cost

Free to use
Relevant legal definitions





























































Clauses













































Relevant Industries

Technology

E-commerce

Media and Entertainment

Financial Services

Retail

Healthcare

Real Estate

Manufacturing

Tourism and Hospitality

Education

Professional Services

Telecommunications

Relevant Teams

Legal

Finance

Commercial

Business Development

Operations

Compliance

Strategy

Corporate Development

Investment

Risk Management

Partnership Management

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Operating Officer

Commercial Director

Business Development Manager

Legal Counsel

Finance Manager

Partnership Manager

Operations Director

Compliance Officer

Contract Manager

Investment Manager

Strategy Director

Managing Partner

Regional 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

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