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Sales Commission Agreement
1. Parties: Identification of the Principal and the Sales Agent/Representative, including full legal names, company registration numbers, and addresses
2. Background: Context of the agreement, including the Principal's business nature and desire to engage the Agent for sales activities
3. Definitions: Key terms used throughout the agreement, including 'Products', 'Territory', 'Customers', 'Commission', 'Net Sales' etc.
4. Appointment and Scope: Terms of appointment, whether exclusive or non-exclusive, and the defined territory
5. Agent's Rights and Obligations: Core responsibilities, sales targets, reporting requirements, and professional conduct expectations
6. Principal's Rights and Obligations: Support to be provided, product information, training, and marketing materials
7. Commission Structure: Commission rates, calculation methods, and payment terms
8. Payment Terms: Timeline for commission payments, invoicing requirements, and payment methods
9. Intellectual Property: Usage rights for trademarks, logos, and marketing materials
10. Confidentiality: Protection of business secrets and confidential information
11. Term and Termination: Duration of agreement, notice periods, and grounds for termination
12. Post-Termination: Obligations after termination, including commission on pending sales and return of materials
13. General Provisions: Standard clauses including governing law, jurisdiction, entire agreement, and amendments
1. Non-Compete: Restrictions on competing activities during and after the agreement term - optional but common in exclusive arrangements
2. Performance Targets: Specific sales targets and consequences of not meeting them - used when implementing performance-based conditions
3. Training Requirements: Specific training obligations and procedures - relevant when products require technical knowledge
4. Customer Support: Post-sale support responsibilities - important when agent handles customer service
5. Insurance: Required insurance coverage - relevant when agent handles valuable products or significant transactions
6. Data Protection: GDPR compliance measures - required when handling personal data
7. Marketing Requirements: Specific marketing obligations and standards - relevant for agents with marketing responsibilities
8. Sub-Agents: Rights and procedures for appointing sub-agents - needed if sub-agents are permitted
1. Schedule 1 - Products: List of products or services covered by the agreement
2. Schedule 2 - Commission Rates: Detailed commission structure, including any variations by product or customer type
3. Schedule 3 - Territory: Detailed description of geographical territory or customer segments
4. Schedule 4 - Sales Targets: Specific sales targets and measurement periods
5. Schedule 5 - Reporting Templates: Standard forms for sales reports and commission calculations
6. Appendix A - Customer List: List of existing customers or excluded accounts, if applicable
7. Appendix B - Marketing Guidelines: Branding and marketing requirements
8. Appendix C - Operating Procedures: Detailed procedures for order processing, customer service, and reporting
Authors
Principal
Agent
Products
Services
Territory
Customers
Existing Customers
New Customers
Commission
Net Sales
Gross Sales
Sales Target
Quarter
Year
Intellectual Property Rights
Confidential Information
Purchase Order
Sales Report
Commission Period
Commission Statement
Effective Date
Initial Term
Renewal Term
Force Majeure Event
Business Day
Competing Products
Marketing Materials
Trade Marks
Minimum Performance Requirements
Order
Valid Order
Payment Terms
Commission Rate
Sales Revenue
Operating Procedures
Termination Date
Notice Period
Group Company
Affiliate
Sub-Agent
Sales Documentation
Commission Due Date
Reporting Period
Territory Customers
Excluded Customers
Direct Sales
Indirect Sales
Product Specifications
Price List
Scope of Authority
Territory Rights
Exclusivity
Commission
Payment Terms
Performance Requirements
Reporting Obligations
Training
Support
Marketing
Intellectual Property
Confidentiality
Non-Competition
Non-Solicitation
Data Protection
Record Keeping
Audit Rights
Term
Termination
Force Majeure
Assignment
Amendments
Notices
Severability
Entire Agreement
Governing Law
Dispute Resolution
Indemnification
Insurance
Compliance
Sub-Contracting
Good Faith
Representations and Warranties
Competition Law Compliance
Customer Relationships
Product Returns
Commission Calculations
Sales Targets
Territory Definition
Post-Termination Obligations
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