The Manufacturing Representative Agreement serves as the foundation for a business relationship between manufacturers and their independent sales representatives. This document is essential when a manufacturer wants to expand their sales reach without hiring direct employees. The agreement, governed by U.S. federal and state laws, clearly defines the scope of authority, territory rights, commission structures, and performance expectations. It includes specific provisions to ensure compliance with state sales representative acts and maintains proper independent contractor classification while protecting both parties' interests in the sales relationship.
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1. Parties: Identification of the manufacturer and the representative, including full legal names and addresses
2. Background: Context of the agreement and brief description of both parties' businesses
3. Definitions: Key terms used throughout the agreement including Products, Territory, Customers, etc.
4. Appointment and Territory: Scope of representative's authority and defined geographic territory
5. Representatives' Duties and Obligations: Detailed responsibilities and performance expectations
6. Compensation: Commission structure, payment terms, and calculation methods
7. Term and Termination: Duration of agreement and conditions for termination
8. Confidentiality: Protection of proprietary information and trade secrets
9. Independent Contractor Status: Clear statement of relationship between parties
1. Non-Compete: Restrictions on representing competing products during and after the agreement term
2. Training Requirements: Specific training obligations and requirements for representatives
3. Marketing Support: Details of marketing materials and support provided by manufacturer
4. Performance Metrics: Specific sales targets and evaluation criteria for representative performance
5. International Trade Compliance: Export control and international trade requirements for cross-border sales
1. Product Schedule: Detailed list of products covered by the agreement
2. Commission Schedule: Detailed breakdown of commission rates and special terms
3. Territory Map: Visual representation of assigned territory
4. Sales Targets: Specific performance metrics and goals
5. Required Reports: Templates and examples of required reporting documents
6. Training Materials: Product information and training documentation
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