The Sub Agent Contract serves as a critical document in business operations where a principal agent needs to delegate authority to additional representatives. This agreement, governed by U.S. federal and state laws, is commonly used in industries such as insurance, real estate, and financial services where multi-level representation is necessary. The contract defines the hierarchical relationship, outlines specific authorities granted, establishes compensation structures, and includes protective clauses for all parties involved. It's essential for maintaining clear lines of responsibility and ensuring compliance with relevant regulations while protecting the interests of all parties in the agency relationship.
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1. Parties: Identifies the principal agent and sub-agent, including full legal names and addresses
2. Background: Explains the context of the agreement and the principal agent's authority to appoint sub-agents
3. Definitions: Defines key terms used throughout the agreement
4. Appointment and Scope: Details of the sub-agent's appointment and scope of authority
5. Territory: Geographical area where sub-agent is authorized to operate
6. Duties and Responsibilities: Specific obligations of the sub-agent
7. Compensation: Commission structure and payment terms
8. Term and Termination: Duration of agreement and conditions for termination
1. Non-Compete: Restrictions on competitive activities - used when protecting market share in specific territories
2. Training Requirements: Specific training obligations - used when specific qualifications or certifications are needed
3. Performance Metrics: Specific targets and evaluation criteria - used when performance-based compensation is included
4. Marketing and Branding: Guidelines for using principal's brand - used when sub-agent will represent the brand publicly
1. Schedule A - Commission Structure: Detailed breakdown of commission calculations and payment terms
2. Schedule B - Territory Description: Detailed description of geographical boundaries
3. Schedule C - Approved Products/Services: List of products or services the sub-agent is authorized to sell/represent
4. Schedule D - Required Qualifications: List of required licenses, certifications, or qualifications
5. Appendix 1 - Reporting Templates: Standard forms for activity and performance reporting
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