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Simple Sales Commission Agreement
"I need a Simple Sales Commission Agreement for our software company to engage sales representatives in Mumbai and Delhi, offering a 10% commission on software license sales with quarterly performance reviews starting March 2025."
1. Parties: Identification of the Principal/Company and the Sales Agent/Representative with full legal names and addresses
2. Background: Context of the agreement, including the company's business nature and desire to engage sales representative
3. Definitions: Key terms used throughout the agreement including 'Commission', 'Products', 'Territory', 'Sales', 'Customers', etc.
4. Appointment and Territory: Formal appointment of the sales representative and definition of their geographic territory or market segment
5. Commission Structure: Details of commission rates, calculation methods, and payment terms
6. Payment Terms: Timing of commission payments, payment methods, and currency
7. Sales Representative's Obligations: Core duties, sales targets, reporting requirements, and professional conduct expectations
8. Principal's Obligations: Support, training, and resources to be provided by the company
9. Term and Termination: Duration of the agreement and conditions for termination by either party
10. Confidentiality: Protection of confidential information and trade secrets
11. Non-Competition: Restrictions on competing activities during and after the agreement
12. Governing Law and Jurisdiction: Specification of Indian law as governing law and jurisdiction for disputes
13. General Provisions: Standard clauses including notices, amendments, and severability
1. Intellectual Property Rights: Include when the sales representative will have access to or use company trademarks, logos, or other IP
2. Training and Support: Include when specific training programs or support systems will be provided
3. Performance Reviews: Include when regular performance evaluations will be conducted
4. Insurance Requirements: Include when the sales representative needs to maintain specific insurance coverage
5. Dispute Resolution: Include detailed arbitration or mediation procedures if preferred over court litigation
6. Force Majeure: Include when protection against unforeseen circumstances is necessary
7. Data Protection: Include when personal data handling is involved in the sales process
8. Indemnification: Include when specific indemnity obligations need to be detailed
1. Schedule A - Commission Rates: Detailed breakdown of commission percentages for different products or services
2. Schedule B - Territory Map: Detailed description or map of the assigned sales territory
3. Schedule C - Product List: List of products or services covered under the agreement
4. Schedule D - Sales Targets: Specific sales targets and any related bonus structures
5. Schedule E - Reporting Templates: Standard forms for sales reports and commission calculations
6. Appendix 1 - Code of Conduct: Detailed guidelines for professional behavior and ethical sales practices
7. Appendix 2 - Operating Procedures: Step-by-step procedures for order processing and customer handling
Authors
Retail
Manufacturing
Technology
Real Estate
Financial Services
Pharmaceuticals
Automotive
Consumer Goods
Industrial Equipment
Telecommunications
Professional Services
Insurance
Software and IT
Sales
Legal
Finance
Human Resources
Operations
Business Development
Compliance
Account Management
Commercial Operations
Revenue Operations
Sales Representative
Business Development Manager
Sales Director
Chief Sales Officer
Regional Sales Manager
Account Executive
Sales Agent
Commission Agent
Territory Manager
Sales Coordinator
Chief Revenue Officer
VP of Sales
Independent Sales Consultant
Channel Sales Manager
Direct Sales Representative
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