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Sub Distribution Agreement
"I need a Sub Distribution Agreement for appointing an exclusive sub-distributor in Riyadh for our medical devices, with specific provisions for product training and local regulatory compliance, to be effective from March 1, 2025."
1. Parties: Identification of all parties including the primary distributor and sub-distributor with full legal names and addresses
2. Background: Context of the agreement, relationship between parties, and reference to the main distribution agreement
3. Definitions: Detailed definitions of key terms used throughout the agreement, including Territory, Products, Principal Distributor, etc.
4. Appointment and Territory: Formal appointment of sub-distributor, scope of territory, and nature of rights (exclusive/non-exclusive)
5. Term and Renewal: Duration of the agreement and conditions for renewal
6. Sub-Distributor's Rights and Obligations: Detailed responsibilities including sales targets, marketing, storage, handling of products
7. Primary Distributor's Rights and Obligations: Obligations regarding product supply, support, training, and information provision
8. Product Orders and Delivery: Procedures for ordering, minimum purchase requirements, delivery terms
9. Prices and Payment Terms: Pricing structure, payment methods, currency, and payment schedules
10. Intellectual Property Rights: Usage rights for trademarks, brands, and other IP
11. Confidentiality: Protection of confidential information and trade secrets
12. Compliance: Compliance with laws, regulations, and Sharia principles
13. Termination: Grounds for termination, notice periods, and consequences
14. Post-Termination: Obligations and rights after agreement ends
15. Governing Law and Dispute Resolution: Application of Saudi law and dispute resolution mechanisms
1. Performance Guarantees: Required when specific performance metrics or financial guarantees are needed
2. Marketing and Promotion: Detailed section when specific marketing requirements or restrictions apply
3. Training Requirements: When product complexity requires specific training programs
4. Insurance: Detailed insurance requirements beyond standard coverage
5. Data Protection: When handling customer data or personal information
6. Force Majeure: Detailed provisions for unforeseen circumstances
7. Anti-Corruption: Enhanced compliance requirements for specific industries or international trade
8. Bank Guarantee: When financial security is required from the sub-distributor
9. Product Registration: For regulated products requiring government registration
1. Schedule 1: Products: Detailed list of products covered under the agreement
2. Schedule 2: Territory: Detailed description of geographical territory and any exclusions
3. Schedule 3: Prices and Commercial Terms: Price lists, discounts, and commercial terms
4. Schedule 4: Performance Targets: Sales targets, KPIs, and measurement criteria
5. Schedule 5: Technical Requirements: Storage, handling, and technical specifications
6. Schedule 6: Brand Guidelines: Guidelines for use of trademarks and marketing materials
7. Schedule 7: Service Level Requirements: Customer service and support standards
8. Appendix A: Main Distribution Agreement Extract: Relevant extracts from the primary distribution agreement
9. Appendix B: Compliance Procedures: Detailed compliance and reporting procedures
Authors
Consumer Goods
Electronics and Technology
Automotive
Healthcare and Pharmaceuticals
Industrial Equipment
Food and Beverage
Construction Materials
Telecommunications
Fashion and Luxury Goods
Home Appliances
Software and Digital Products
Medical Devices
Chemicals and Materials
Legal
Commercial
Sales
Distribution
Operations
Supply Chain
Compliance
Business Development
Contract Management
Logistics
Regulatory Affairs
Commercial Director
Sales Manager
Distribution Manager
Legal Counsel
Compliance Officer
Business Development Manager
Operations Manager
Supply Chain Manager
Contract Manager
Regional Sales Director
Channel Manager
Chief Commercial Officer
Logistics Manager
Territory Manager
Regulatory Affairs Manager
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