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Non Exclusive Agency Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Non Exclusive Agency Agreement

"I need a Non-Exclusive Agency Agreement for my UK-based medical devices company to appoint a Riyadh-based agent starting March 2025, with specific provisions for product registration requirements and a commission structure based on achieving quarterly sales targets."

Document background
The Non-Exclusive Agency Agreement is essential for businesses seeking to establish commercial presence in Saudi Arabia while maintaining flexibility in their distribution strategy. This document is particularly relevant when a principal wishes to appoint an agent in Saudi Arabia without granting exclusive rights, thereby preserving the ability to work with multiple agents or direct sales channels. The agreement must comply with Saudi Commercial Agencies Law, its implementing regulations, and Sharia principles, requiring registration with the Ministry of Commerce. It typically includes detailed provisions on territory definition, commission structures, performance expectations, and compliance requirements specific to Saudi Arabia. The non-exclusive nature of the agreement makes it particularly suitable for principals testing new markets or those requiring multiple channels to effectively cover the Saudi market.
Suggested Sections

1. Parties: Identification of Principal and Agent, including full legal names, commercial registration numbers, and authorized representatives

2. Background: Context of the agreement, business objectives, and confirmation of Agent's capabilities

3. Definitions: Key terms used throughout the agreement, including Territory, Products, and Commission structure

4. Appointment and Scope: Clear statement of non-exclusive appointment, territory definition, and permitted activities

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

6. Agent's Rights and Obligations: Detailed responsibilities including promotion, reporting, and compliance with local laws

7. Principal's Rights and Obligations: Support, training, and product supply obligations

8. Commission Structure: Calculation method, payment terms, and currency specifications

9. Intellectual Property Rights: Usage rights and restrictions regarding Principal's trademarks and materials

10. Confidentiality: Protection of business secrets and confidential information

11. Compliance with Laws: Obligation to comply with Saudi laws, including Commercial Agencies Law and Sharia principles

12. Termination: Grounds for termination, notice requirements, and consequences

13. Post-Termination Obligations: Return of materials, outstanding payments, and transition arrangements

14. Governing Law and Jurisdiction: Saudi law as governing law and dispute resolution mechanisms

15. General Provisions: Standard clauses including notices, amendments, and severability

Optional Sections

1. Performance Targets: Specific sales or performance goals, used when Principal wants to set measurable objectives

2. Sub-Agents: Terms for appointment of sub-agents, if permitted

3. Training Requirements: Detailed training obligations, when specific product knowledge is crucial

4. Marketing and Advertising: Specific requirements for marketing activities and cost sharing

5. Insurance: Insurance requirements, when dealing with high-value products or specific risks

6. Bank Guarantee: Requirements for financial security, used in high-value agreements

7. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in international trade

8. Anti-Corruption: Detailed anti-corruption provisions, especially important for international principals

9. Data Protection: Specific data handling requirements, when dealing with personal or sensitive data

Suggested Schedules

1. Schedule 1 - Products: Detailed list of products covered by the agreement

2. Schedule 2 - Territory: Detailed description of geographical territory and any exclusions

3. Schedule 3 - Commission Rates: Detailed commission structure, including any variations by product or customer type

4. Schedule 4 - Performance Criteria: Specific performance metrics and evaluation criteria

5. Schedule 5 - Trademark Usage Guidelines: Specific rules for use of Principal's trademarks and branding

6. Schedule 6 - Reporting Templates: Standard forms for regular reporting requirements

7. Schedule 7 - Compliance Requirements: Specific local law compliance requirements and procedures

8. Appendix A - Required Documentation: List of documents required for Commercial Agency registration in Saudi Arabia

9. Appendix B - Contact Details: Key contact persons and communication protocols

Authors

Alex Denne

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

Relevant legal definitions







































Clauses









































Relevant Industries

Manufacturing

Consumer Goods

Industrial Equipment

Technology and Software

Pharmaceuticals

Automotive

Construction Materials

Medical Devices

Fashion and Luxury Goods

Food and Beverages

Electronics

Telecommunications

Professional Services

Chemical Products

Agricultural Products

Relevant Teams

Legal

Commercial Operations

Business Development

Sales

Compliance

International Operations

Contract Administration

Corporate Strategy

Distribution

Regional Management

Relevant Roles

Commercial Director

Business Development Manager

Legal Counsel

Compliance Officer

Sales Director

Managing Director

Country Manager

Operations Manager

Contract Manager

Chief Executive Officer

Regional Director

Distribution Manager

Agency Relations Manager

Strategy Director

Commercial Operations Manager

Industries








Teams

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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