An Exclusive Sales Representative Agreement is essential when a company wishes to establish a dedicated sales presence in a specific territory while maintaining control over their distribution channel. This contract type is commonly used in the United States and must comply with both federal and state-specific sales representative protection laws. The agreement typically covers commission structures, performance requirements, territory definitions, and termination conditions, while providing exclusivity rights to the representative within their designated area.
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1. Parties: Identification of the principal company and the sales representative
2. Background: Context of the agreement and brief description of the business relationship
3. Definitions: Key terms used throughout the agreement
4. Appointment and Territory: Formal appointment of representative and definition of exclusive territory
5. Rights and Obligations: Detailed responsibilities of both parties
6. Commission Structure: Payment terms, rates, and calculation methods
7. Term and Termination: Duration of agreement and termination conditions
8. Confidentiality: Protection of confidential information
9. Governing Law: Applicable jurisdiction and dispute resolution
1. Non-Compete: Restrictions on competing activities - include when protection against competition is crucial
2. Training and Support: Details of training provided by principal - include when significant training is part of the relationship
3. Marketing Requirements: Specific marketing obligations - include when specific marketing efforts are expected
4. Performance Targets: Sales targets and performance metrics - include when specific performance levels need to be maintained
5. Insurance Requirements: Required insurance coverage - include when specific insurance coverage is necessary
1. Schedule A - Territory Definition: Detailed description of exclusive territory
2. Schedule B - Commission Schedule: Detailed commission rates and calculation methods
3. Schedule C - Product List: List of products/services covered by the agreement
4. Schedule D - Performance Metrics: Detailed performance requirements and measurement criteria
5. Schedule E - Reporting Requirements: Templates and schedules for required reports
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