The Intermediary Commission Agreement serves as a critical document for businesses operating in the United States that rely on third-party intermediaries for revenue generation. This contract type is essential for clearly defining commission structures, payment terms, and performance expectations while ensuring compliance with federal and state regulations. It protects both parties by establishing clear guidelines for the business relationship and helps prevent future disputes regarding compensation and obligations.
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1. Parties: Identification of principal and intermediary, including full legal names and addresses
2. Background: Context of the agreement and general purpose of the intermediary arrangement
3. Definitions: Key terms used throughout the agreement, including 'Commission', 'Services', 'Territory'
4. Appointment: Formal appointment of intermediary and scope of authority
5. Commission Structure: Detailed breakdown of commission rates and calculation methods
6. Payment Terms: Timeline and method of commission payments
7. Obligations of Parties: Respective duties and responsibilities of both parties
8. Term and Termination: Duration of agreement and termination provisions
9. Governing Law: Applicable jurisdiction and dispute resolution
1. Non-Compete: Restrictions on intermediary's other business activities when exclusivity is required
2. International Provisions: FCPA compliance and international business regulations for cross-border transactions
3. Intellectual Property: Protection of trademarks and proprietary information when IP assets are involved
4. Force Majeure: Provisions for unforeseen circumstances, typically included in long-term agreements
1. Commission Rate Schedule: Detailed breakdown of commission rates for different products/services
2. Territory Definition: Geographic scope of intermediary's authority
3. Product/Service List: Items/services covered under the agreement
4. Reporting Templates: Standard forms for activity and commission reports
5. Compliance Procedures: Required regulatory compliance protocols
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