The Manufacturing Representative Agreement is a crucial document for foreign manufacturers seeking to establish a commercial presence in the UAE market through local representatives. This agreement type is specifically designed to comply with UAE Commercial Agency Law (Federal Law No. 18 of 1981) and related regulations, which provide significant protection to registered commercial agents. The document establishes the framework for the representative to promote and sell the manufacturer's products, defines territorial rights, commission structures, and performance requirements. It's particularly important as registered agency agreements in the UAE provide the local agent with statutory protections and exclusive territorial rights. The agreement needs to carefully balance the manufacturer's interests with local legal requirements, including provisions for registration with the UAE Ministry of Economy where applicable.
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1. Parties: Identification of the manufacturer and the representative, including full legal names, addresses, and registration details
2. Background: Context of the agreement, brief description of the manufacturer's business and products, and the representative's qualifications
3. Definitions: Key terms used throughout the agreement, including Products, Territory, Customers, Net Sales, etc.
4. Appointment and Territory: Scope of representative's appointment, territorial rights, and exclusivity/non-exclusivity provisions
5. Rights and Obligations of Representative: Detailed responsibilities including marketing, sales targets, customer service, and reporting requirements
6. Rights and Obligations of Manufacturer: Manufacturer's commitments regarding product supply, support, training, and marketing materials
7. Financial Terms: Commission structure, payment terms, currency, and calculation methods
8. Intellectual Property Rights: Protection and usage rights of trademarks, patents, and other IP
9. Confidentiality: Protection of confidential information and trade secrets
10. Term and Termination: Duration of agreement, renewal terms, and termination provisions compliant with UAE law
11. Post-Termination Obligations: Duties and rights of both parties after agreement termination
12. Governing Law and Dispute Resolution: UAE law as governing law and dispute resolution mechanisms
1. Product Quality and Warranty: Include when representative will handle warranty claims or quality issues on behalf of manufacturer
2. Training and Support: Include when manufacturer will provide specific training programs or technical support
3. Non-Competition: Include when restricting representative from representing competing products
4. Insurance: Include when specific insurance requirements are needed for product liability or business operations
5. Compliance with Local Laws: Include when specific regulatory compliance requirements exist for the products
6. Sub-Representatives: Include when representative may appoint sub-representatives
7. Performance Targets: Include when specific sales targets or KPIs are crucial to the agreement
1. Schedule 1 - Products: Detailed list of products covered under the agreement
2. Schedule 2 - Territory: Detailed description of geographical territory and any excluded areas
3. Schedule 3 - Commission Structure: Detailed breakdown of commission rates, calculation methods, and examples
4. Schedule 4 - Sales Targets: Specific sales targets and performance metrics
5. Schedule 5 - Trademark Usage Guidelines: Guidelines for use of manufacturer's trademarks and branding
6. Appendix A - Reporting Templates: Standard forms for regular sales and activity reporting
7. Appendix B - Technical Requirements: Technical specifications and support requirements
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