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Business Development Commission Agreement
"I need a Business Development Commission Agreement for engaging a representative to sell our enterprise software solutions in South India, with a tiered commission structure starting from 5% for initial sales and increasing to 12% for renewals, to be effective from March 1, 2025."
1. Parties: Identification and details of the Principal Company and the Business Development Representative
2. Background: Context of the agreement and brief description of the business relationship
3. Definitions: Definitions of key terms used throughout the agreement
4. Appointment and Scope: Terms of appointment and detailed scope of business development services
5. Territory and Market Segment: Defined geographical area and/or market segments where the representative is authorized to operate
6. Commission Structure: Detailed breakdown of commission rates, calculation methods, and payment terms
7. Payment Terms: Timeline and method of commission payments, including currency and tax considerations
8. Obligations of the Representative: Duties, responsibilities, and performance expectations of the business development representative
9. Obligations of the Company: Company's commitments, support, and responsibilities towards the representative
10. Term and Termination: Duration of the agreement and conditions for termination
11. Confidentiality: Protection of confidential information and trade secrets
12. Non-Competition and Non-Solicitation: Restrictions on competitive activities and client solicitation
13. Representations and Warranties: Standard declarations and guarantees from both parties
14. Indemnification: Mutual indemnification provisions and liability limitations
15. Governing Law and Jurisdiction: Applicable law and jurisdiction for dispute resolution
16. General Provisions: Standard boilerplate clauses including notices, amendments, and severability
1. Performance Targets: Specific sales or business development targets, used when the agreement includes performance-based elements
2. Training and Support: Details of training and support provided by the company, included when significant onboarding or ongoing support is required
3. Intellectual Property Rights: IP ownership and usage rights, included when the representative will be handling or creating IP
4. Insurance Requirements: Specific insurance coverage requirements, included for high-value or high-risk arrangements
5. Compliance with Anti-Corruption Laws: Detailed anti-corruption provisions, included for international dealings or when required by company policy
6. Data Protection: Specific data protection and privacy requirements, included when personal data processing is involved
7. Force Majeure: Provisions for unforeseen circumstances, included when requested by either party
8. Post-Termination Obligations: Specific obligations after agreement termination, included for complex relationships
1. Schedule A - Commission Rates: Detailed breakdown of commission percentages for different products/services
2. Schedule B - Territory Definition: Detailed description of geographical territories and/or market segments
3. Schedule C - Target Products/Services: List and description of products/services covered under the agreement
4. Schedule D - Reporting Templates: Standard formats for activity reports and commission calculations
5. Schedule E - Key Performance Indicators: Detailed metrics for measuring representative's performance
6. Appendix 1 - Code of Conduct: Company's code of conduct and ethical business practices
7. Appendix 2 - Operating Procedures: Standard operating procedures for business development activities
Authors
Information Technology
Manufacturing
Professional Services
Real Estate
Healthcare
Financial Services
Telecommunications
Consumer Goods
Industrial Products
Energy
Education
Construction
Retail
Logistics
Consulting
Legal
Sales
Business Development
Commercial
Finance
Compliance
Operations
Partner Relations
Contract Administration
Account Management
Business Development Manager
Sales Director
Chief Commercial Officer
Regional Sales Manager
Channel Partner Manager
Legal Counsel
Contracts Manager
Commercial Director
Chief Executive Officer
Business Development Representative
Sales Operations Manager
Partner Relations Manager
Account Executive
Chief Financial Officer
Compliance Officer
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