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Sub Agent Contract
"I need a Sub Agent Contract for appointing a local distributor to sell our automotive spare parts in the Eastern Province of Saudi Arabia, with specific performance targets and a commission structure based on sales volume."
1. Parties: Identification of the Principal Agent and Sub-Agent with full legal names, registration details, and addresses
2. Background: Context of the agreement, including reference to the main agency agreement and basis for sub-agency appointment
3. Definitions: Definitions of key terms used throughout the agreement
4. Appointment and Scope: Formal appointment of sub-agent, defining territory and products/services covered
5. Term and Renewal: Duration of the agreement and conditions for renewal
6. Rights and Obligations of Sub-Agent: Detailed responsibilities, performance requirements, and conduct expectations
7. Commission Structure: Payment terms, commission rates, and calculation methods
8. Reporting Requirements: Regular reporting obligations and documentation requirements
9. Intellectual Property Rights: Usage rights and restrictions regarding principal's IP
10. Confidentiality: Confidentiality obligations and handling of sensitive information
11. Non-Competition: Restrictions on competing activities during and after the agreement
12. Termination: Grounds for termination and termination procedures
13. Post-Termination Obligations: Obligations and restrictions following agreement termination
14. Governing Law and Jurisdiction: Specification of Saudi law as governing law and dispute resolution mechanisms
15. General Provisions: Standard boilerplate clauses including notices, amendments, and severability
1. Performance Targets: Specific sales or performance targets, used when the principal agent wants to set measurable objectives
2. Training Requirements: Mandatory training obligations, included when specific product or service knowledge is required
3. Marketing and Promotion: Marketing obligations and guidelines, used when sub-agent has specific promotional responsibilities
4. Insurance Requirements: Specific insurance coverage requirements, included for high-risk products or services
5. Bank Guarantee: Requirements for bank guarantees or other financial security, used for high-value contracts
6. Compliance with FCPA/Anti-corruption: Detailed anti-corruption provisions, essential when dealing with international transactions
7. Data Protection: Specific data handling requirements, included when personal data processing is involved
8. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in long-term contracts
1. Schedule 1 - Territory Definition: Detailed description of geographical territory covered by sub-agency
2. Schedule 2 - Products/Services: Comprehensive list of products or services covered under the agreement
3. Schedule 3 - Commission Rates: Detailed commission structure, including any variations based on product type or volume
4. Schedule 4 - Reporting Templates: Standard forms and templates for required regular reporting
5. Schedule 5 - Performance Metrics: Detailed KPIs and measurement criteria
6. Appendix A - Main Agency Agreement Extract: Relevant excerpts from the principal agency agreement
7. Appendix B - Compliance Procedures: Detailed compliance requirements and procedures
8. Appendix C - Marketing Guidelines: Brand guidelines and marketing requirements
Authors
Retail
Manufacturing
Automotive
Consumer Goods
Industrial Equipment
Technology
Healthcare
Construction
Energy
Telecommunications
Professional Services
Logistics
Fashion and Luxury Goods
Food and Beverage
Pharmaceuticals
Legal
Commercial
Sales
Business Development
Compliance
Operations
Distribution
Finance
Risk Management
International Trade
Corporate Affairs
Commercial Director
Business Development Manager
Legal Counsel
Compliance Officer
Sales Director
Regional Manager
General Manager
Contract Manager
Chief Executive Officer
Chief Commercial Officer
Operations Manager
Distribution Manager
Channel Manager
Agency Relations Manager
Legal Director
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