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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
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