The Company and the Agent want to enter into an agreement under which the agent will market and sell the product on the terms and conditions. This sales representation agreement is intended to be used by a manufacturer or supplier in a country that wishes to appoint a representative as a sales agent in another country. The agreement is somewhat unusual in that, in lieu of the agent/representative who receives commissions on sales, the agreement provides that the client participates in the representative`s promotional costs and that at the end of each year, a special account is established for activities under the agreement and the profits are divided into pre-established shares between the client and the representative. A manufacturer or company wishing to outsource the marketing of its products in an overseas country to a sales agent or representative based in the country. It defines the financial structure and incentive plans. 6.1 provides for the contractor to make a cash contribution to the representative`s operating costs as well as to the reimbursement of the costs incurred by the agent. The text provides for reimbursement of travel and living expenses, but it could extend to the salary of a sales agent.B. Paragraphs 6.1.3 and 6.1.4 deal with the reimbursement of the agent`s expenses, which relate directly to the activities of the awarding entity - whether it is 100% or not - is a matter of agreement. The royalty rules. Since this is not a simple commission plan, it is likely that the representative will receive a cost of living fund and then contribute to the profits. Non-competition.
The company making the appointment will want to prevent the representative from working both during the agreement and for a period after the end for direct competitors. This representation agreement establishes an agreement between a manufacturer or supplier and a sales agent in another country. Unlike a commission agreement, the company that orders is more like an employer or joint venture partner. It will provide financial resources to the representative and, at the end of each year, the representative will receive a share of the profits based on the results obtained. The role of the representative. What are their exact duties? These may vary depending on the type of activity. This clause provides for a firm departure phase from the agreement which, under this agreement, passes from one year to the next, unless one of the parties decides to denounce it. Given the nature of the agreement`s interest, the initial period is expected to be longer than one year. Article 6.3.2 shows how profits should be distributed.