This Sales Subcontractor Agreement is essential for businesses operating in Saudi Arabia that wish to expand their sales reach through third-party sales representatives. The document is particularly relevant in situations where companies need to establish a formal sales network without direct employment relationships. It ensures compliance with Saudi Arabian commercial law, labor regulations, and Sharia principles while protecting both parties' interests. The agreement typically includes detailed provisions for commission structures, territorial rights, performance metrics, and compliance requirements. It's specifically designed to address the unique aspects of Saudi Arabian business practices and regulatory requirements, making it distinct from similar agreements used in other jurisdictions. The document is crucial for businesses looking to establish legitimate and compliant sales relationships in the Saudi market.
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1. Parties: Identification of the main contractor and subcontractor with full legal names and addresses
2. Background: Context of the agreement, including the main contractor's business and need for sales subcontractor services
3. Definitions: Key terms used throughout the agreement, including Products, Territory, Customers, Commission, etc.
4. Appointment and Scope: Terms of appointment, whether exclusive or non-exclusive, and detailed scope of services
5. Term and Renewal: Duration of the agreement and conditions for renewal
6. Subcontractor's Obligations: Detailed responsibilities including sales targets, reporting, compliance with laws, and service standards
7. Main Contractor's Obligations: Support, training, and materials to be provided by the main contractor
8. Commission Structure: Detailed commission calculations, payment terms, and conditions (Sharia-compliant)
9. Intellectual Property: Usage rights and restrictions regarding trademarks, logos, and marketing materials
10. Confidentiality: Protection of confidential information and trade secrets
11. Non-Competition and Non-Solicitation: Restrictions during and after the agreement term
12. Compliance and Anti-Corruption: Compliance with Saudi laws, anti-corruption provisions, and ethical business practices
13. Termination: Grounds for termination, notice periods, and consequences
14. Governing Law and Dispute Resolution: Saudi law as governing law and dispute resolution mechanisms
15. General Provisions: Standard clauses including force majeure, notices, and amendments
1. Territory Exclusivity: Used when granting exclusive rights in specific geographical areas
2. Performance Targets: Include when specific sales targets or KPIs are required
3. Training and Support: Detailed section when extensive training or support is provided
4. Marketing and Promotion: When subcontractor has specific marketing responsibilities
5. Insurance Requirements: When specific insurance coverage is required
6. Data Protection: When handling of customer data is involved
7. Bank Guarantee: When financial security is required from the subcontractor
8. Import/Export Compliance: When international sales are involved
1. Schedule 1 - Products and Services: Detailed list of products/services covered by the agreement
2. Schedule 2 - Commission Rates: Detailed commission structure and calculation methods
3. Schedule 3 - Territory: Detailed description of geographical territory covered
4. Schedule 4 - Performance Targets: Specific sales targets and KPIs
5. Schedule 5 - Reporting Requirements: Ƶ and timing for required reports
6. Schedule 6 - Training Program: Details of initial and ongoing training requirements
7. Appendix A - Compliance Policies: Main contractor's compliance and ethical policies
8. Appendix B - Required Forms: Standard forms for orders, reports, and other documentation
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Technology and Software
Construction Materials
Consumer Goods
Industrial Equipment
Automotive
Healthcare Products
Electronics
Telecommunications
Professional Services
Chemical Products
Building Materials
Industrial Supplies
Medical Devices
Relevant Teams
Legal
Sales
Business Development
Compliance
Finance
Operations
Commercial
Risk Management
Contract Administration
Corporate Affairs
Relevant Roles
Sales Director
Business Development Manager
Commercial Director
Legal Counsel
Compliance Officer
Sales Operations Manager
Regional Sales Manager
Channel Manager
Contract Manager
Chief Commercial Officer
Sales Administrator
Territory Manager
Business Development Director
General Counsel
Chief Executive Officer
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