This Sales Representative Contract is essential for businesses operating in Belgium who wish to engage sales representatives to promote and sell their products or services. The document is structured to comply with Belgian law, particularly the Commercial Agency Law of 1995, which implements EU Directive 86/653/EEC. It's commonly used when companies want to expand their market presence through independent sales representatives rather than employed salespeople. The agreement covers crucial aspects such as territory definition, commission structures, representative obligations, termination provisions, and post-termination compensation. It's particularly important as Belgian law provides strong protections for commercial agents, including mandatory provisions for notice periods and goodwill indemnity upon termination.
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1. Parties: Identification of the principal company and the sales representative, including full legal names, addresses, and registration details
2. Background: Context of the agreement and brief description of the parties' business relationship
3. Definitions: Key terms used throughout the agreement, including Products, Territory, Customers, Commission, etc.
4. Appointment and Scope: Formal appointment of the sales representative, specification of exclusive/non-exclusive nature, and territory definition
5. Rights and Obligations of the Sales Representative: Detailed responsibilities including promotion, reporting, compliance with instructions, and professional conduct
6. Rights and Obligations of the Principal: Principal's duties including providing information, materials, and support necessary for the representative's activities
7. Commission Structure: Detailed commission calculations, payment terms, and conditions for earning commission
8. Reporting and Payment Terms: Requirements for activity reporting, commission statements, and payment procedures
9. Intellectual Property Rights: Protection and usage rights of trademarks, logos, and other IP during the representation
10. Confidentiality: Obligations regarding confidential information and trade secrets
11. Duration and Termination: Contract term, notice periods, and grounds for termination as per Belgian law
12. Post-Termination Provisions: Obligations after contract end, including goodwill compensation and return of materials
13. General Provisions: Standard clauses including governing law, jurisdiction, entire agreement, and amendments
1. Non-Compete Obligations: Restrictions on competing activities during and after the contract, used when protecting market position is crucial
2. Customer Transfer: Provisions for transferring customers upon termination, relevant for exclusive territories
3. Performance Targets: Specific sales targets and consequences of meeting/missing them, used when performance measurement is desired
4. Training and Support: Details of training provided by the principal, used when specific product knowledge is required
5. Insurance Requirements: Specific insurance coverage requirements, used when risk management is important
6. Data Protection: GDPR compliance provisions, used when personal data processing is involved
7. Sub-agents: Rules regarding appointment of sub-agents, used when sub-delegation might be needed
8. Marketing Requirements: Specific marketing obligations and standards, used for brand-sensitive products
1. Schedule 1 - Territory Description: Detailed description of geographical territory and any excluded areas
2. Schedule 2 - Product List: Comprehensive list of products/services covered by the agreement
3. Schedule 3 - Commission Rates: Detailed commission structure, including any variations by product or customer type
4. Schedule 4 - Reporting Templates: Standard forms for activity reporting and commission calculations
5. Schedule 5 - Sales Targets: Specific performance targets and measurement criteria
6. Schedule 6 - Operating Procedures: Detailed procedures for order processing, customer service, and other operational matters
7. Appendix A - Principal's Branding Guidelines: Guidelines for use of trademarks, logos, and marketing materials
8. Appendix B - Confidential Information: Specific list of information considered confidential under the agreement
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