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Sales Commission Contract
"I need a Sales Commission Contract for our New Zealand software company to engage a new enterprise sales representative, with a tiered commission structure starting from 5% for standard sales and increasing to 8% for exceeding quarterly targets, effective from March 1, 2025."
1. Parties: Identification of the company/principal and the salesperson, including full legal names and contact details
2. Background: Context of the agreement, nature of the business, and general purpose of the commission arrangement
3. Definitions: Key terms used throughout the agreement, including 'Commission', 'Sales', 'Territory', 'Products/Services', 'Targets', etc.
4. Appointment and Scope: Terms of appointment, territory/market assignment, and scope of sales authority
5. Commission Structure: Detailed explanation of commission rates, calculation methods, and qualifying criteria
6. Payment Terms: Timing of commission payments, payment methods, and handling of disputed amounts
7. Sales Targets: Any minimum performance requirements or sales targets that affect commission eligibility
8. Reporting and Records: Requirements for sales reporting, record-keeping, and commission statements
9. Obligations of the Parties: Specific duties and responsibilities of both the company and the salesperson
10. Term and Termination: Duration of the agreement and circumstances under which it can be terminated
11. Post-Termination: Treatment of commissions after contract termination and ongoing obligations
12. Confidentiality: Protection of confidential information and trade secrets
13. Governing Law: Specification of New Zealand law as governing law and jurisdiction for disputes
1. Non-Compete: Restrictions on working with competitors, used when the salesperson has access to sensitive information or significant client relationships
2. Intellectual Property: IP protection clauses, needed when the salesperson might create or use company IP
3. Expenses: Terms for reimbursement of sales-related expenses, included when the company will cover certain costs
4. Training and Support: Company's obligations regarding training and resources, included for complex products or services
5. Insurance: Insurance requirements, included when the salesperson needs specific coverage
6. Dispute Resolution: Specific dispute resolution procedures, included for high-value or complex arrangements
7. Assignment: Rights to assign the agreement, included when there's potential for corporate restructuring or sale
1. Commission Rates Schedule: Detailed breakdown of commission rates for different products/services or sales thresholds
2. Territory Description: Detailed description of geographical or market segment boundaries
3. Product/Service List: Comprehensive list of products/services covered by the agreement
4. Sales Targets Schedule: Detailed performance metrics and associated rewards or penalties
5. Approved Expense Categories: List of reimbursable expenses and approval procedures
6. Reporting Templates: Standard forms for sales reporting and commission calculations
Authors
Term
Commission Structure
Payment Terms
Sales Targets
Territory Rights
Performance Obligations
Reporting Requirements
Record Keeping
Confidentiality
Non-Competition
Non-Solicitation
Intellectual Property
Representations and Warranties
Termination
Post-Termination Obligations
Force Majeure
Indemnification
Insurance
Assignment
Relationship of Parties
Dispute Resolution
Governing Law
Entire Agreement
Severability
Notices
Variation
GST and Taxation
Retail
Real Estate
Financial Services
Technology
Manufacturing
Professional Services
Telecommunications
Pharmaceutical
Automotive
Insurance
Construction
Energy
Media and Advertising
Sales
Business Development
Commercial
Legal
Human Resources
Finance
Operations
Compliance
Account Management
Sales Representative
Business Development Manager
Account Executive
Sales Manager
Territory Manager
Regional Sales Director
Channel Manager
Sales Agent
Commercial Director
Sales Consultant
Business Development Representative
Account Manager
Inside Sales Representative
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