This Sales Outsourcing Agreement is designed for use in the Hong Kong business environment where companies frequently engage external partners to manage their sales functions. The document is particularly relevant when a business wants to expand its sales capacity without increasing internal headcount, enter new markets efficiently, or leverage specialized sales expertise. It includes comprehensive provisions addressing commission structures, performance metrics, territorial rights, and compliance with Hong Kong regulations, particularly the Personal Data (Privacy) Ordinance, Employment Ordinance, and Competition Ordinance. The agreement is structured to protect both parties' interests while ensuring operational flexibility and clear accountability in the sales outsourcing relationship.
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1. Parties: Identifies and provides details of the principal company and the sales outsourcing partner
2. Background: Sets out the context of the agreement and the parties' objectives
3. Definitions and Interpretation: Defines key terms used throughout the agreement and interpretation rules
4. Appointment and Scope of Services: Defines the nature of appointment and detailed scope of sales services to be provided
5. Term and Renewal: Specifies the initial term of the agreement and any renewal provisions
6. Obligations of the Sales Partner: Details the responsibilities and duties of the sales outsourcing partner
7. Obligations of the Principal: Outlines the responsibilities of the principal company
8. Compensation and Payment Terms: Details the fee structure, commission rates, and payment procedures
9. Performance Standards and KPIs: Establishes performance metrics and minimum service levels
10. Reporting and Audit Rights: Specifies reporting requirements and the principal's audit rights
11. Confidentiality and Data Protection: Addresses confidentiality obligations and data protection requirements
12. Intellectual Property Rights: Covers ownership and usage rights of intellectual property
13. Representations and Warranties: Contains standard representations and warranties from both parties
14. Termination: Sets out termination rights and procedures
15. Post-Termination Obligations: Describes obligations surviving termination
16. General Provisions: Contains standard boilerplate clauses including governing law, notices, etc.
1. Non-Compete and Non-Solicitation: Restricts competitive activities and employee solicitation - include when protecting market position is crucial
2. Insurance: Specifies required insurance coverage - include when significant risks need to be covered
3. Compliance with Anti-Bribery Laws: Details anti-bribery compliance requirements - include for international sales or high-risk markets
4. Force Majeure: Addresses unforeseeable circumstances - include when operating in volatile markets or regions
5. Marketing and Branding: Controls use of branding and marketing materials - include when brand protection is important
6. Training Requirements: Specifies training obligations - include when product/service requires specialized knowledge
7. Subcontracting: Governs ability to subcontract services - include when subcontracting might be needed
8. Customer Complaint Handling: Establishes procedures for handling customer complaints - include for consumer-facing sales
1. Schedule 1: Territory and Product/Service Description: Detailed description of sales territory and products/services covered
2. Schedule 2: Commission Structure and Calculations: Detailed breakdown of commission rates, tiers, and calculation methods
3. Schedule 3: Performance Metrics and KPIs: Specific performance targets, measurement methods, and reporting requirements
4. Schedule 4: Reporting Templates: Standard formats for regular sales reports and performance updates
5. Schedule 5: Contact Details and Notice Recipients: Key contact persons and their details for both parties
6. Schedule 6: Sales Procedures and Guidelines: Detailed sales processes, protocols, and compliance requirements
7. Appendix A: Data Protection Requirements: Specific data handling and protection procedures
8. Appendix B: Required Insurance Coverage: Detailed insurance requirements and minimum coverage levels
Authors
Relevant legal definitions
Clauses
Relevant Industries
Technology and Software
Financial Services
Consumer Goods
Manufacturing
Telecommunications
Healthcare and Pharmaceuticals
Professional Services
Real Estate
Insurance
E-commerce
Industrial Equipment
Retail
Relevant Teams
Legal
Sales
Business Development
Compliance
Finance
Operations
Procurement
Risk Management
Commercial
Relevant Roles
Chief Commercial Officer
Sales Director
Business Development Manager
Legal Counsel
Compliance Officer
Commercial Director
Chief Operating Officer
Procurement Manager
Contract Manager
Sales Operations Manager
Chief Financial Officer
Risk Manager
Regional Sales Manager
Channel Partner Manager
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