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Sub Distribution Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

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."

Document background
The Sub Distribution Agreement is essential for businesses operating multi-tiered distribution networks in Saudi Arabia. This document is typically used when a primary distributor wishes to expand their distribution network by appointing sub-distributors while maintaining control over the distribution chain. The agreement must comply with Saudi Arabian laws, including the Commercial Agencies Law, Competition Law, and Sharia principles. It contains detailed provisions covering appointment, territory rights, performance requirements, product handling, pricing structures, and compliance obligations. The document is particularly important in Saudi Arabia where commercial agency and distribution relationships are heavily regulated, and proper documentation is crucial for legal protection and government registration where required. The agreement serves as a comprehensive framework for managing the relationship between the primary distributor and sub-distributor while ensuring alignment with the principal manufacturer's requirements and local legal obligations.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

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

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

Relevant Teams

Legal

Commercial

Sales

Distribution

Operations

Supply Chain

Compliance

Business Development

Contract Management

Logistics

Regulatory Affairs

Relevant Roles

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

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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