International Sales Representative Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

International Sales Representative Agreement

"I need an International Sales Representative Agreement for appointing an exclusive sales representative in Riyadh and Eastern Province of Saudi Arabia for our industrial automation equipment, with specific technical training requirements and quarterly sales targets starting March 2025."

Document background
The International Sales Representative Agreement is essential for foreign companies seeking to establish a sales presence in Saudi Arabia through local representatives. This document is particularly crucial as it must comply with Saudi Arabia's stringent Commercial Agencies Law and Sharia law principles while protecting the interests of both the foreign principal and the local representative. The agreement typically includes detailed provisions on territorial rights, commission structures, performance targets, compliance requirements, and reporting obligations. It's commonly used when a foreign company wants to leverage local expertise and connections without establishing a direct presence in Saudi Arabia, while ensuring proper registration with relevant authorities and compliance with local regulations. The document must carefully balance international commercial practices with local legal requirements, making it a critical tool for market entry and expansion strategies in Saudi Arabia.
Suggested Sections

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, nature of the parties' businesses, and their intended commercial relationship

3. Definitions: Key terms used throughout the agreement, including Territory, Products, Customers, Commission, etc.

4. Appointment and Territory: Scope of appointment, exclusivity/non-exclusivity, and detailed definition of the territorial boundaries

5. Representative's Rights and Obligations: Core duties, sales targets, reporting requirements, and standard of performance

6. Principal's Rights and Obligations: Support to be provided, training, marketing materials, and product information obligations

7. Commission Structure: Detailed commission calculations, payment terms, and conditions for commission eligibility

8. Intellectual Property: Usage rights for trademarks, trade names, and other IP during the agreement term

9. Confidentiality: Protection of confidential information and trade secrets

10. Compliance: Anti-corruption, trade compliance, and local law compliance obligations

11. Term and Termination: Duration, renewal provisions, and grounds for termination

12. Post-Termination: Rights and obligations after agreement termination, including commission tail provisions

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

14. General Provisions: Standard boilerplate clauses including force majeure, notices, and amendments

Optional Sections

1. Non-Competition: Restrictions on representing competing products - optional based on business relationship and enforceability under local law

2. Performance Targets: Specific sales targets and consequences of non-achievement - used when implementing performance-based retention

3. Marketing and Advertising: Detailed marketing obligations and cost-sharing - relevant for more comprehensive relationships

4. Training Requirements: Specific training obligations and programs - important for technical products or complex sales processes

5. Sub-agents: Rights and restrictions regarding appointment of sub-agents - relevant if sub-agents are permitted

6. Insurance: Specific insurance requirements - important for high-risk products or territories

7. Data Protection: Detailed data protection obligations - necessary if handling personal data

8. Import/Export Compliance: Detailed trade compliance obligations - necessary for cross-border product movements

Suggested Schedules

1. Schedule 1 - Products: Detailed list of products covered by the agreement, including specifications and prices

2. Schedule 2 - Territory: Detailed description of territorial boundaries, including maps if necessary

3. Schedule 3 - Commission Rates: Detailed commission structures, including any variations by product or customer type

4. Schedule 4 - Sales Targets: Specific sales targets and measurement periods

5. Schedule 5 - Reporting Templates: Standard forms for regular sales and activity reporting

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

7. Appendix A - Compliance Policies: Principal's key compliance policies applicable to the representative

8. Appendix B - Technical Requirements: Technical or qualification requirements for sales personnel

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 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

Manufacturing

Technology

Consumer Goods

Industrial Equipment

Healthcare & Medical Devices

Automotive

Construction Materials

Electronics

Telecommunications

Professional Services

Chemical & Petrochemical

Food & Beverage

Relevant Teams

Legal

Sales

Business Development

Compliance

Finance

International Operations

Risk Management

Commercial Operations

Contract Administration

Regional Management

Relevant Roles

Chief Executive Officer

Commercial Director

Sales Director

Business Development Manager

International Sales Manager

Legal Counsel

Compliance Officer

Contract Manager

Regional Sales Manager

Export Manager

Country Manager

Channel Manager

General Counsel

Chief Financial Officer

Risk 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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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