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Master Broker Agreement
"I need a Master Broker Agreement for my Saudi-based technology distribution company to appoint an exclusive broker for the GCC region, with specific provisions for software licensing and cloud services compliance, to be effective from March 2025."
1. Parties: Identification of the principal company and the broker, including full legal names, commercial registration numbers, and authorized representatives
2. Background: Context of the agreement, nature of the parties' businesses, and general purpose of the brokerage relationship
3. Definitions: Key terms used throughout the agreement, including regulatory terms as per Saudi law
4. Appointment and Scope: Formal appointment of broker and detailed scope of authorized services
5. Regulatory Compliance: Obligations to comply with Saudi laws, CMA regulations, and Sharia principles
6. Broker's Obligations: Detailed responsibilities, service standards, and compliance requirements
7. Principal's Obligations: Support, information, and resources to be provided to the broker
8. Commission Structure: Detailed fee arrangements, payment terms, and calculation methods
9. Representations and Warranties: Standard and specific warranties from both parties, including regulatory authorizations
10. Confidentiality: Protection of confidential information and trade secrets
11. Term and Termination: Duration, renewal provisions, and termination circumstances
12. Liability and Indemnification: Risk allocation, limitation of liability, and indemnification provisions
13. Force Majeure: Events excusing performance, including process for notification and mitigation
14. Dispute Resolution: Jurisdiction, governing law, and dispute resolution mechanisms as per Saudi law
15. General Provisions: Standard boilerplate clauses adapted to Saudi law requirements
1. Exclusivity: Used when the broker is granted exclusive rights in specific territories or for specific services
2. Performance Targets: Include when specific performance metrics or sales targets are part of the arrangement
3. Training and Support: Required when the principal provides specific training or support systems
4. Insurance Requirements: Detailed insurance obligations beyond standard requirements
5. Data Protection: Enhanced data protection provisions when handling sensitive personal or financial data
6. Anti-Corruption: Enhanced compliance provisions for high-risk territories or services
7. Marketing and Branding: When broker is authorized to use principal's branding or conduct marketing
8. Succession Planning: For long-term strategic relationships requiring continuity planning
1. Schedule 1 - Services Description: Detailed description of authorized brokerage services
2. Schedule 2 - Commission Structure: Detailed commission calculations, examples, and payment terms
3. Schedule 3 - Territories: Defined geographical areas or market segments for broker's activities
4. Schedule 4 - Compliance Requirements: Specific regulatory and compliance obligations
5. Schedule 5 - Service Levels: Performance metrics and service level requirements
6. Schedule 6 - Required Reports: Templates and requirements for periodic reporting
7. Schedule 7 - Key Personnel: List of key personnel and their roles from both parties
8. Appendix A - Power of Attorney: If required, formal authorization document as per Saudi law
9. Appendix B - Required Forms: Standard forms for orders, reports, or other routine communications
Authors
Financial Services
Real Estate
Insurance
Investment Banking
Securities Trading
Commercial Property
Industrial Distribution
Import/Export
Commodities Trading
Technology Distribution
Healthcare Supply Chain
Construction Materials
Agricultural Products
Energy and Utilities
Legal
Compliance
Sales
Finance
Operations
Business Development
Risk Management
Regulatory Affairs
Commercial
Channel Management
Corporate Governance
Partner Relations
Chief Executive Officer
Commercial Director
Head of Sales
Legal Counsel
Compliance Officer
Chief Financial Officer
Business Development Manager
Sales Director
Contract Manager
Risk Manager
Operations Director
Channel Manager
Regional Manager
Broker Relations Manager
Regulatory Affairs Director
Company Secretary
General Counsel
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