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Sub Agency Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Sub Agency Agreement

"I need a Sub Agency Agreement for appointing a Riyadh-based sub-agent to distribute medical devices in the Eastern Province of Saudi Arabia, with strict compliance requirements for healthcare products and a 5% commission structure starting March 2025."

Document background
The Sub Agency Agreement is utilized when a primary agent in Saudi Arabia wishes to delegate certain rights and responsibilities to another party (sub-agent) while maintaining compliance with Saudi Arabian law. This arrangement is common in situations where specialized expertise, additional distribution channels, or broader geographical coverage is required. The document must align with the Saudi Commercial Agencies Law, which requires specific provisions regarding registration, territory definitions, and commission structures. It typically includes detailed sections on the scope of authority, compliance requirements, financial arrangements, and termination provisions. The agreement is particularly important in the Saudi Arabian context due to the strict regulatory requirements governing agency relationships and the need to ensure compliance with both commercial law and Sharia principles.
Suggested Sections

1. Parties: Identification of the Principal Agent and Sub-Agent with full legal names, commercial registration details, and authorized representatives

2. Background: Context of the agreement, including reference to the main agency agreement and basis for appointing a sub-agent

3. Definitions: Defined terms used throughout the agreement, including territory, products/services, and key commercial terms

4. Appointment and Scope: Terms of sub-agent appointment, territory definition, and scope of authority granted

5. Duration and Renewal: Term of the agreement, renewal conditions, and notice periods

6. Rights and Obligations of Sub-Agent: Detailed responsibilities, performance standards, and compliance requirements

7. Rights and Obligations of Principal Agent: Support, training, and other obligations of the principal agent

8. Financial Terms: Commission structure, payment terms, expenses, and financial reporting requirements

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

10. Intellectual Property: Usage rights and restrictions regarding trademarks, trade names, 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. Post-Termination Obligations: Obligations and rights of parties after agreement termination

15. Governing Law and Dispute Resolution: Saudi law as governing law and dispute resolution mechanisms

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

Optional Sections

1. Performance Targets: Specific sales targets or performance metrics, used when quantifiable goals are part of the arrangement

2. Marketing and Promotion: Specific marketing obligations and cost-sharing arrangements, included when marketing is a key component

3. Training Requirements: Detailed training obligations and programs, included when specific expertise is required

4. Insurance: Insurance requirements and coverage details, included for high-risk activities or when required by principal

5. Bank Guarantee: Requirements for providing financial security, included when financial guarantees are required

6. Inventory Requirements: Stock levels and warehouse requirements, included for product distribution agreements

7. Customer Support: Service level requirements and support obligations, included for technical products/services

8. Data Protection: Specific data handling and privacy requirements, included when personal data is processed

9. Force Majeure: Provisions for unforeseen circumstances, included based on risk assessment

Suggested Schedules

1. Schedule 1 - Territory Definition: Detailed description of geographical territory and any exclusions

2. Schedule 2 - Products/Services: Comprehensive list of products or services covered by the agreement

3. Schedule 3 - Commission Structure: Detailed commission calculations, rates, and payment terms

4. Schedule 4 - Performance Criteria: Specific KPIs, targets, and evaluation metrics

5. Schedule 5 - Required Approvals and Licenses: List of regulatory approvals and licenses required

6. Schedule 6 - Trademark Usage Guidelines: Specific rules for use of principal's trademarks and branding

7. Appendix A - Principal Agency Agreement Extract: Relevant excerpts from the main agency agreement

8. Appendix B - Reporting Templates: Standard forms for required periodic reports

9. Appendix C - Operating Procedures: Detailed operational procedures and requirements

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


































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Relevant Industries

Manufacturing

Consumer Goods

Automotive

Technology

Healthcare

Industrial Equipment

Construction

Oil and Gas

Telecommunications

Pharmaceuticals

Retail

Financial Services

Food and Beverage

Agriculture

Transportation and Logistics

Relevant Teams

Legal

Commercial

Sales

Business Development

Compliance

Operations

Finance

Risk Management

Corporate Affairs

Distribution

Channel Management

Regulatory Affairs

Relevant Roles

Commercial Director

Legal Counsel

Business Development Manager

Country Manager

Regional Sales Director

Compliance Officer

Contract Manager

Chief Executive Officer

Managing Director

Operations Director

Distribution Manager

Channel Manager

Sales Manager

General Counsel

Regulatory Affairs 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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