This Sales Rep Agreement template is designed for use under Dutch law when companies wish to engage sales representatives to promote and sell their products or services. The agreement incorporates mandatory provisions required by Dutch commercial agency law and EU regulations, including the EU Commercial Agents Directive as implemented in the Netherlands. It's particularly suitable for businesses expanding their sales operations in the Netherlands or Dutch companies engaging sales representatives domestically or internationally. The document covers essential aspects such as territory definition, commission calculations, performance expectations, and termination provisions, while ensuring compliance with Dutch legal requirements regarding notice periods, commission payments, and post-termination compensation.
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1. Parties: Identification of the principal company and the sales representative, including full legal names, registration numbers, and addresses
2. Background: Context of the agreement and brief description of the business relationship
3. Definitions: Key terms used throughout the agreement, including Products, Territory, Customers, Commission, etc.
4. Appointment and Scope: Formal appointment of the sales representative and definition of their role and territory
5. Rights and Obligations of Sales Representative: Core duties, reporting requirements, and standards of performance
6. Rights and Obligations of Principal: Company's commitments, support provided, and information sharing requirements
7. Commission Structure: Detailed commission calculations, payment terms, and conditions for earning commission
8. Intellectual Property Rights: Protection of company's IP and usage rights granted to representative
9. Confidentiality: Obligations regarding confidential information and trade secrets
10. Term and Termination: Duration of agreement, notice periods, and grounds for termination
11. Post-Termination Obligations: Return of materials, handover requirements, and final commission payments
12. Governing Law and Jurisdiction: Confirmation of Dutch law application and dispute resolution process
1. Non-Compete Clause: Restrictions on competing activities during and after the agreement - optional but common, must comply with Dutch competition law
2. Minimum Performance Requirements: Specific sales targets or KPIs - include when performance metrics are crucial
3. Marketing and Advertising: Guidelines for promotional activities - relevant when rep has marketing responsibilities
4. Training Requirements: Mandatory training programs - include when specific product knowledge is required
5. Insurance Requirements: Professional liability insurance obligations - important for high-value products
6. Data Protection Compliance: Detailed GDPR compliance measures - essential when handling significant customer data
7. Sub-agents: Rules for appointing sub-agents - include when sub-agents might be needed
8. Customer Support Obligations: After-sales service requirements - relevant for technical products
1. Schedule 1 - Territory Description: Detailed definition of geographical area or customer segments
2. Schedule 2 - Product List: Complete list of products/services covered by the agreement
3. Schedule 3 - Commission Rates: Detailed commission structure, including any variations by product or customer
4. Schedule 4 - Sales Targets: Specific performance metrics and evaluation criteria
5. Schedule 5 - Reporting Templates: Standard forms for sales reports and activity logging
6. Appendix A - Company Policies: Relevant company policies that apply to sales representatives
7. Appendix B - Customer Management Procedures: Guidelines for customer interaction and management
8. Appendix C - Expense Policy: Rules and procedures for expense claims and reimbursement
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