The Sub Agent Contract is essential for businesses operating in Indonesia that utilize multi-tiered agency structures for market penetration and business expansion. This document is typically used when a Principal Agent, who has direct authority from a principal company, needs to delegate certain rights and responsibilities to a Sub Agent to extend market reach or provide specialized services in specific territories. The agreement must comply with Indonesian legal requirements, including the Civil Code (KUHPerdata) and Commercial Code (KUHD), while clearly defining the scope of authority, territorial rights, commission structures, and compliance obligations. The Sub Agent Contract is particularly important in protecting all parties' interests by establishing clear boundaries of authority, performance expectations, and accountability measures, while ensuring alignment with local regulatory requirements and business practices.
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1. Parties: Identification of the Principal Agent and Sub Agent with complete legal names and addresses
2. Background: Context of the appointment, including reference to the main agency agreement and authority to appoint sub-agents
3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement
4. Appointment and Scope: Formal appointment of the Sub Agent and detailed scope of authority
5. Territory and Products: Defined geographical area and products/services covered by the sub-agency
6. Rights and Obligations of Sub Agent: Detailed responsibilities, duties, and rights of the Sub Agent
7. Rights and Obligations of Principal Agent: Responsibilities and obligations of the Principal Agent towards the Sub Agent
8. Commission and Payment Terms: Commission structure, calculation method, payment terms and conditions
9. Reporting and Accountability: Requirements for reporting, record-keeping, and accountability measures
10. Intellectual Property Rights: Protection and usage rights of trademarks, logos, and other IP
11. Confidentiality: Obligations regarding confidential information and trade secrets
12. Term and Termination: Duration of agreement and grounds for termination
13. Post-Termination Obligations: Obligations and restrictions after agreement ends
14. Governing Law and Dispute Resolution: Applicable law and method of resolving disputes
15. General Provisions: Standard boilerplate clauses including notices, amendments, etc.
1. Non-Competition: Restrictions on competing activities during and after the agreement - include when exclusivity is required
2. Performance Targets: Specific sales or performance targets - include when performance metrics are crucial
3. Training and Support: Details of training and support provided - include when significant training is part of the relationship
4. Insurance: Insurance requirements - include when specific insurance coverage is necessary
5. Bank Guarantee: Requirements for bank guarantees - include when financial security is needed
6. Compliance with Anti-Corruption Laws: Detailed anti-corruption compliance requirements - include for high-risk territories or industries
7. Sub-Sub Agents: Rights and restrictions regarding appointment of sub-sub agents - include when further delegation might be needed
8. Marketing and Promotion: Specific marketing obligations and restrictions - include when marketing is a key responsibility
1. Schedule 1: Products and Services: Detailed list of products/services covered by the agreement
2. Schedule 2: Territory: Detailed description of geographical territory and any exclusions
3. Schedule 3: Commission Structure: Detailed commission calculations, rates, and examples
4. Schedule 4: Reporting Templates: Standard forms for regular reporting requirements
5. Schedule 5: Performance Metrics: Detailed KPIs and measurement criteria
6. Schedule 6: Trademark Usage Guidelines: Guidelines for use of Principal's trademarks and branding
7. Appendix A: Required Documentation: List of required licenses, permits, and documentation
8. Appendix B: Contact Details: Key contact persons and communication protocols
Relevant legal definitions
Clauses
Relevant Industries
Manufacturing
Consumer Goods
Industrial Products
Technology
Pharmaceuticals
Insurance
Real Estate
Automotive
Agriculture
Telecommunications
Energy
Construction
Trading & Distribution
Financial Services
Relevant Teams
Legal
Commercial
Sales
Business Development
Compliance
Operations
Risk Management
Contract Administration
Distribution
Regional Operations
Relevant Roles
Commercial Director
Business Development Manager
Sales Director
Legal Counsel
Compliance Officer
Regional Manager
Country Manager
Channel Manager
Agency Manager
Operations Director
Contract Administrator
Risk Manager
Sales Operations Manager
Territory Manager
Distribution Manager
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