The Subagency Agreement is essential when a principal agent wishes to delegate some or all of their agency duties to another party (the subagent) while maintaining the primary agency relationship with the principal. This document is particularly relevant in Malta's business environment, where international trade and multi-tier distribution networks are common. The agreement must comply with Maltese law, including the Civil Code and Commercial Code, as well as applicable EU regulations. It typically includes detailed provisions on appointment terms, territorial restrictions, commission structures, performance requirements, and termination conditions. The document is crucial for businesses expanding their distribution networks or delegating agency responsibilities while ensuring proper legal protection and clear delineation of rights and obligations under Maltese jurisdiction.
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1. Parties: Identification of the principal agent and subagent, including full legal names and registered addresses
2. Background: Context of the agreement, including reference to the primary agency agreement and reason for subagency appointment
3. Definitions: Key terms used throughout the agreement, including Territory, Products/Services, Commission, etc.
4. Appointment and Scope: Terms of appointment, exclusivity/non-exclusivity, and detailed scope of subagent's authority
5. Duration and Termination: Term of the agreement, renewal provisions, and grounds for termination
6. Duties and Obligations: Specific responsibilities of the subagent, including reporting requirements and performance standards
7. Commission and Payment Terms: Commission structure, calculation method, payment terms, and conditions for commission entitlement
8. Intellectual Property Rights: Protection and usage rights of trademarks, logos, and other IP belonging to the principal
9. Confidentiality: Obligations regarding confidential information and trade secrets
10. Non-Competition and Non-Solicitation: Restrictions during and after the agreement term
11. Governing Law and Jurisdiction: Confirmation of Maltese law governance and jurisdiction for disputes
12. General Provisions: Standard boilerplate clauses including notices, entire agreement, and amendments
1. Training and Support: Include when the principal agent will provide specific training or support services to the subagent
2. Insurance Requirements: Include when specific insurance coverage is required from the subagent
3. Data Protection: Include when personal data processing is involved, addressing GDPR compliance
4. Marketing and Promotion: Include when the subagent has specific marketing responsibilities or restrictions
5. Performance Targets: Include when specific sales or performance targets are part of the agreement
6. Audit Rights: Include when the principal agent requires rights to audit the subagent's activities
7. Force Majeure: Include when specific provisions for unforeseen circumstances are needed
8. Assignment and Succession: Include when transfer rights need to be specifically addressed
1. Territory Definition: Detailed description of the geographical area or market segment covered
2. Products/Services: Comprehensive list of products or services the subagent is authorized to promote/sell
3. Commission Structure: Detailed breakdown of commission rates, tiers, and calculation methods
4. Performance Metrics: Specific KPIs and measurement criteria for subagent performance
5. Reporting Templates: Standard forms and templates for required regular reporting
6. Marketing Guidelines: Specific rules and guidelines for marketing and promoting products/services
7. Operating Procedures: Detailed procedures for day-to-day operations and interactions
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