This marketing agreement is suitable for manufacturer appointing marketing agent (not sales agent who can bind the Principal) into new territory. The Agent will be paid a commission as a % the Price instead of buying on own account. The Agent can also be a distributor. This form is drafted for the benefit of the Agent.
The Principal manufactures at its premises and wishes to extend the area in which sales are made to [TERRITORY], a territory in which it has little existing customers and little marketing experience.
The Agent has extensive marketing experience in [TERRITORY] and is willing to act as marketing agent for the products listed in Schedule 1 to this Agreement in the Territory (as defined below).
The Agent also markets/manufactures/distributes various products, including in particular [OTHER_PRODUCTS], but these do not compete with the Principal's products and, prior to the discussions with the Principal leading to this Agreement, had neither the capacity nor the intention to manufacture any products competing with the Principal's products.
2.1 The Principal hereby appoints the Agent as its agent in the Territory for the promotion of, and solicitation of customers for, the Products, and the Agent hereby agrees to act in that capacity, subject to the terms and conditions of this Agreement.
2.2 The Principal shall not during the continuance of this Agreement:
(a) appoint any other person, firm or company as the Principal's agent for the promotion or sale of the Products in the Territory or for the solicitation of customers for the Products in the Territory.
(b) appoint any other person, firm or company as distributor of the Products in the Territory.
The Principal shall be entitled to make sales of the Products to customers in the Territory whether or not they have been introduced to the Principal by the Agent.
The Agent shall not solicit any orders for the Products:
(a) from any person in the Territory if the Agent knows or has reason to believe that the Products concerned will be resold outside the Territory; or
(b) from any person outside the Territory.