The Sales Subcontractor Agreement is essential for businesses operating in Malaysia that wish to expand their sales capacity through external partners without creating direct employment relationships. This document is typically used when a company wants to engage independent sales professionals or firms to market and sell their products or services while maintaining control over brand representation and sales processes. The agreement must comply with Malaysian legal requirements, including the Contracts Act 1950, Employment Act 1955, and relevant tax regulations. It covers crucial aspects such as commission structures, sales territories, performance metrics, confidentiality obligations, and termination provisions. This agreement is particularly important for maintaining clear boundaries between employment and independent contractor relationships under Malaysian law, while ensuring effective sales channel management.
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1. Parties: Identification of the main contractor and subcontractor with full legal names and addresses
2. Background: Context of the agreement and brief description of the business relationship
3. Definitions: Key terms used throughout the agreement
4. Appointment and Scope: Terms of appointment and detailed scope of subcontractor's services
5. Term and Renewal: Duration of the agreement and renewal provisions
6. Subcontractor's Obligations: Detailed responsibilities and performance requirements
7. Company's Obligations: Main contractor's responsibilities and support provisions
8. Compensation and Payment: Commission structure, payment terms, and expenses
9. Performance Targets: Sales targets, KPIs, and performance measurement criteria
10. Relationship of Parties: Clarification of independent contractor status
11. Compliance with Laws: Requirements for legal compliance including tax and business regulations
12. Confidentiality: Protection of confidential information and trade secrets
13. Non-Competition and Non-Solicitation: Restrictions on competitive activities and customer solicitation
14. Intellectual Property: Ownership and usage rights of IP
15. Termination: Grounds and procedures for agreement termination
16. Post-Termination Obligations: Duties and restrictions after agreement ends
17. General Provisions: Standard boilerplate clauses including notices, amendments, governing law
1. Training and Support: Details of training provided by the company - include when significant training is part of the relationship
2. Marketing and Branding: Guidelines for using company branding - include when subcontractor will represent the brand directly
3. Insurance Requirements: Specific insurance coverage requirements - include for high-risk sales activities
4. Data Protection: Specific data handling requirements - include when dealing with personal data
5. Exclusivity: Exclusive territory or customer provisions - include when granting exclusive rights
6. Minimum Purchase Requirements: Minimum stock or purchase obligations - include for product-based sales
7. Foreign Currency Provisions: Currency exchange and international payment terms - include for cross-border arrangements
8. Force Majeure: Provisions for unforeseen circumstances - include for long-term or high-value contracts
1. Schedule 1 - Territory Description: Detailed description of geographical areas or market segments covered
2. Schedule 2 - Commission Structure: Detailed breakdown of commission rates, tiers, and calculation methods
3. Schedule 3 - Products and Services: List and description of products/services the subcontractor is authorized to sell
4. Schedule 4 - Performance Metrics: Detailed KPIs, targets, and measurement criteria
5. Schedule 5 - Reporting Requirements: Templates and procedures for regular reporting
6. Schedule 6 - Training Program: Details of required training and certification programs
7. Appendix A - Standard Operating Procedures: Detailed procedures for sales operations and customer interaction
8. Appendix B - Compliance Guidelines: Specific compliance requirements and procedures
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