The International Sales Representative Agreement is essential for companies seeking to expand their market presence through independent sales representatives in international territories. This agreement, governed by South African law, establishes the legal framework for appointing and managing international sales representatives while ensuring compliance with South African regulations, including exchange control requirements, tax laws, and consumer protection legislation. It is particularly crucial when a company wants to maintain control over its sales process while leveraging local expertise in foreign markets. The document covers essential aspects such as territory definitions, commission structures, performance metrics, compliance requirements, and protection of intellectual property. It's designed to provide clarity on the rights and obligations of both parties while mitigating potential risks in international business relationships.
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1. Parties: Identification of the Principal and the Sales Representative, including full legal names, registration numbers, and registered addresses
2. Background: Context of the agreement, including the Principal's business, desire to appoint a representative, and Representative's expertise
3. Definitions: Definitions of key terms used throughout the agreement, including Territory, Products, Customers, Commission, etc.
4. Appointment and Territory: Formal appointment of the Representative and definition of the geographic territory covered
5. Duration and Term: Period of the agreement, including commencement date, initial term, and renewal provisions
6. Representative's Rights and Obligations: Detailed responsibilities, including sales targets, reporting requirements, and customer service standards
7. Principal's Rights and Obligations: Principal's commitments, including product supply, marketing support, and training provisions
8. Commission Structure: Detailed commission calculations, payment terms, and currency specifications
9. Intellectual Property Rights: Protection and usage rights of trademarks, logos, and other IP
10. Confidentiality: Protection of confidential information and trade secrets
11. Non-Competition and Non-Solicitation: Restrictions during and after the agreement term
12. Termination: Grounds for termination, notice periods, and consequences of termination
13. Post-Termination Obligations: Obligations surviving termination, including handover of materials and ongoing confidentiality
14. Governing Law and Jurisdiction: Specification of South African law and jurisdiction for disputes
15. General Provisions: Standard clauses including force majeure, notices, entire agreement, and amendments
1. Minimum Performance Requirements: Specific sales targets and consequences for not meeting them - include when performance metrics are crucial
2. Sub-Representatives: Terms for appointing sub-representatives - include when sub-delegation may be necessary
3. Product Training: Detailed training requirements and procedures - include for complex products
4. Marketing and Advertising: Specific marketing obligations and cost sharing - include when joint marketing is planned
5. Insurance Requirements: Specific insurance coverage requirements - include for high-value products or risky territories
6. Data Protection: Detailed POPIA compliance measures - include when significant personal data processing is involved
7. Foreign Exchange Provisions: Detailed currency handling and exchange rate provisions - include for volatile currencies
8. B-BBEE Compliance: Specific B-BBEE requirements - include when representative is based in South Africa
1. Schedule 1: Products: Detailed list of products covered by the agreement, including specifications and prices
2. Schedule 2: Territory: Detailed description of geographic territory, including any excluded areas or customers
3. Schedule 3: Commission Structure: Detailed commission calculations, including any variations by product or customer type
4. Schedule 4: Performance Targets: Specific sales targets and measurement criteria
5. Schedule 5: Reporting Requirements: Templates and timing for regular reports
6. Schedule 6: Trademark Usage Guidelines: Specific rules for using Principal's trademarks and branding
7. Appendix A: Standard Operating Procedures: Detailed procedures for order processing, customer service, and support
8. Appendix B: Contact Details: Key contact persons and communication protocols
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