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Sponsorship Commission Agreement

Sponsorship Commission Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Sponsorship Commission Agreement

"I need a Sponsorship Commission Agreement for my technology company entering the UAE market, with a 5% commission structure and quarterly payments to the local sponsor, starting from March 2025."

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Document background
The Sponsorship Commission Agreement is a crucial document in the UAE business landscape, where local sponsorship is often required for foreign businesses to operate. This agreement type is specifically designed to comply with UAE federal and emirate-level regulations, including the Commercial Agency Law (Federal Law No. 18 of 1981) and related commercial legislation. It is typically used when establishing business relationships between UAE nationals or entities acting as sponsors and foreign companies or individuals seeking to conduct business in the UAE. The document covers essential aspects such as sponsorship services, commission calculations, payment terms, compliance requirements, and termination provisions. It's particularly important for businesses entering the UAE market, ensuring clear documentation of the sponsorship arrangement and associated financial obligations while maintaining compliance with local laws and regulations.
Suggested Sections

1. Parties: Identification of the sponsor and the sponsored party with full legal names and addresses

2. Background: Context of the sponsorship arrangement and brief description of the parties' business relationship

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

4. Appointment and Scope: Details of the sponsorship appointment and scope of services to be provided

5. Term and Renewal: Duration of the agreement and conditions for renewal

6. Commission Structure: Detailed explanation of commission calculations, rates, and payment terms

7. Payment Terms: Timeline and method of commission payments, currency, and handling of expenses

8. Obligations of the Sponsor: Specific duties and responsibilities of the sponsor

9. Obligations of the Sponsored Party: Specific duties and responsibilities of the sponsored party

10. Compliance: Obligations to comply with UAE laws and regulations

11. Confidentiality: Protection of confidential information exchanged during the relationship

12. Termination: Grounds for termination and the process for ending the agreement

13. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for disputes

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

Optional Sections

1. Immigration and Visa Requirements: Used when the sponsorship involves visa sponsorship or employment relationships

2. Intellectual Property Rights: Include when the agreement involves use of trademarks, logos, or other IP

3. Non-Competition: Add when exclusivity or territorial restrictions are required

4. Force Majeure: Include specific force majeure provisions beyond standard cases

5. Insurance: Add when specific insurance requirements need to be maintained

6. Anti-Corruption Compliance: Include detailed anti-corruption provisions for high-value or government-related sponsorships

7. Bank Guarantee: Used when financial security or performance guarantee is required

Suggested Schedules

1. Schedule 1 - Commission Rates: Detailed breakdown of commission rates and calculation methods

2. Schedule 2 - Services Description: Detailed description of sponsorship services to be provided

3. Schedule 3 - Payment Schedule: Timeline and details of commission payments

4. Schedule 4 - Required Documents: List of documents required for visa processing or regulatory compliance

5. Schedule 5 - Performance Metrics: Key performance indicators and evaluation criteria if applicable

6. Appendix A - Contact Details: Key contact persons and their details for both parties

7. Appendix B - Compliance Requirements: Specific regulatory and compliance requirements applicable to the sponsorship

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
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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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