The Sub Agency Agreement is utilized when a principal agent, operating under authority from an original principal, needs to delegate certain rights and responsibilities to another party (sub-agent) in Indonesia. This arrangement is common in situations where geographical expansion, market penetration, or specialized expertise is required. The document must comply with Indonesian legal requirements, particularly the Civil Code (KUHPer) and commercial regulations. It typically includes detailed provisions on appointment scope, territorial rights, commission structures, reporting requirements, and compliance obligations. The agreement is crucial for businesses operating through multi-tiered agency structures in Indonesia, especially in sectors requiring local market expertise or extended distribution networks.
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1. Parties: Identification of the Principal Agent and Sub-Agent, including complete legal names and addresses
2. Background: Context of the agreement, including reference to the main agency agreement and basis for sub-agency appointment
3. Definitions: Key terms used throughout the agreement, including Territory, Products/Services, Commission, and other relevant terms
4. Appointment and Scope: Terms of sub-agent appointment, scope of authority, and territorial limitations
5. Duration: Term of the agreement, including commencement date and renewal provisions
6. Sub-Agent's Rights and Obligations: Detailed responsibilities, performance requirements, and authorized activities
7. Principal Agent's Rights and Obligations: Support, training, and other obligations of the principal agent
8. Commission and Payment Terms: Commission structure, calculation method, payment timing, and currency
9. Reporting and Compliance: Regular reporting requirements and compliance with local regulations
10. Intellectual Property: Usage rights and restrictions regarding trademarks, logos, and other IP
11. Confidentiality: Protection of confidential information and trade secrets
12. Non-Competition and Non-Solicitation: Restrictions during and after the agreement term
13. Termination: Grounds for termination, notice requirements, and consequences
14. Governing Law and Dispute Resolution: Application of Indonesian law and dispute resolution mechanisms
15. General Provisions: Standard clauses including notices, amendments, and severability
1. Performance Targets: Specific sales or performance targets, used when quantitative metrics are required
2. Training Requirements: Detailed training obligations, included when specific training is crucial
3. Marketing and Promotion: Marketing obligations and restrictions, relevant for consumer-facing products
4. Insurance Requirements: Specific insurance coverage requirements, important for high-risk activities
5. Data Protection: Specific data handling requirements, necessary when dealing with personal data
6. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in volatile markets
7. Bank Guarantee: Requirements for financial security, used in high-value agreements
1. Schedule 1 - Territory Definition: Detailed description of the geographical area covered
2. Schedule 2 - Products/Services: Comprehensive list of products or services covered by the agreement
3. Schedule 3 - Commission Structure: Detailed commission calculations and examples
4. Schedule 4 - Performance Metrics: Specific KPIs and measurement criteria
5. Schedule 5 - Reporting Ƶ: Standard forms for regular reporting
6. Schedule 6 - Principal Agent's Policies: Relevant company policies and procedures
7. Appendix A - Power of Attorney: Formal authorization document as required under Indonesian law
8. Appendix B - Main Agency Agreement Extract: Relevant portions of the main agency agreement
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Consumer Goods
Financial Services
Insurance
Real Estate
Technology
Telecommunications
Automotive
Pharmaceuticals
Industrial Equipment
Retail
Agriculture
Energy
Construction
Tourism
Relevant Teams
Legal
Commercial
Sales
Business Development
Compliance
Operations
Finance
Risk Management
Distribution
Channel Management
International Operations
Relevant Roles
Commercial Director
Business Development Manager
Sales Director
Legal Counsel
Compliance Officer
Contract Manager
Regional Manager
Country Manager
Sales Agent
Distribution Manager
Channel Partner Manager
Agency Relations Manager
Operations Director
Chief Commercial Officer
Business Development Director
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