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Memorandum Of Agreement For Sales Commission
"I need a Memorandum Of Agreement For Sales Commission for our Canadian software company that handles both domestic and US sales, with a tiered commission structure starting at 5% for standard sales and increasing to 12% for enterprise deals, including specific provisions for recurring SaaS revenue and team-based incentives."
1. Parties: Identification of the principal company and the sales representative/agent
2. Background: Context of the agreement and the general business relationship
3. Definitions: Key terms used throughout the agreement including 'Commission', 'Sales', 'Territory', 'Products/Services'
4. Appointment and Scope: Terms of appointment and scope of sales authority
5. Commission Structure: Basic commission rates and calculation methodology
6. Payment Terms: Timing and method of commission payments
7. Sales Representative's Obligations: Core duties, reporting requirements, and performance standards
8. Company's Obligations: Support, training, and resources provided by the company
9. Term and Termination: Duration of agreement and termination provisions
10. Confidentiality: Protection of confidential information and trade secrets
11. Non-Competition and Non-Solicitation: Restrictions on competitive activities
12. General Provisions: Standard boilerplate clauses including governing law, amendments, and notices
1. Performance Targets: Specific sales targets and performance metrics, used when minimum performance standards are required
2. Training Requirements: Detailed training obligations and certifications, included when specific qualifications are needed
3. Expense Reimbursement: Terms for reimbursing sales-related expenses, used when the company will cover certain costs
4. Intellectual Property Rights: IP ownership and usage rights, included when the sales role involves branded materials or product development
5. Insurance Requirements: Required insurance coverage, included when the sales activity carries significant risks
6. Dispute Resolution: Specific procedures for resolving disputes, used when parties want to specify mediation or arbitration
7. Multiple Territory Provisions: Rules for managing multiple sales territories, included when the representative covers multiple areas
8. Team Management: Provisions for managing sub-agents or teams, used when the representative may build a sales team
1. Schedule A - Commission Rates: Detailed breakdown of commission percentages for different products/services
2. Schedule B - Territory Definition: Specific geographical or market segment boundaries
3. Schedule C - Product/Service List: Comprehensive list of products/services covered by the agreement
4. Schedule D - Sales Targets: Detailed performance metrics and bonus structures
5. Schedule E - Reporting Templates: Standard forms for sales reporting and commission calculations
6. Appendix 1 - Commission Calculation Examples: Practical examples showing how commissions are calculated in various scenarios
7. Appendix 2 - Expense Policy: Detailed policies regarding reimbursable expenses and submission procedures
Authors
Retail
Technology
Manufacturing
Professional Services
Real Estate
Financial Services
Telecommunications
Pharmaceutical
Consumer Goods
Industrial Equipment
Software and SaaS
Insurance
Automotive
Construction
Sales
Legal
Human Resources
Finance
Operations
Compensation and Benefits
Revenue Operations
Business Development
Contract Administration
Compliance
Sales Representative
Account Executive
Business Development Manager
Sales Director
Regional Sales Manager
Commission-based Consultant
Independent Sales Agent
Territory Manager
Channel Sales Manager
Sales Operations Manager
Chief Revenue Officer
VP of Sales
Contract Administrator
HR Manager
Compensation Specialist
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