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The Agent Commission Sharing Agreement is essential for businesses operating in the Philippines that utilize multiple sales agents or representatives in their sales process. This document becomes necessary when two or more agents collaborate on sales activities and need to share the resulting commissions in a structured, legally compliant manner. The agreement, governed by Philippine law, particularly the Civil Code provisions on agency relationships and relevant commercial regulations, provides a framework for commission allocation, defines the roles and responsibilities of each party, and establishes clear procedures for commission calculations and distributions. It helps prevent disputes by clearly documenting the terms of collaboration and ensures compliance with local tax regulations regarding commission payments. The document is particularly valuable in situations where multiple parties contribute to securing a sale or when implementing tiered sales structures with primary and secondary agents.

1. Parties: Identification of all parties involved in the commission sharing arrangement, including their legal names, addresses, and business registration details

2. Background: Context of the agreement, explaining the business relationship and purpose of the commission sharing arrangement

3. Definitions: Clear definitions of key terms used throughout the agreement, including 'Commission', 'Products/Services', 'Territory', 'Customers', etc.

4. Appointment and Scope: Details of the agent's appointment, territory, and authorized activities

5. Commission Structure: Detailed breakdown of commission rates, calculation methods, and sharing proportions between parties

6. Payment Terms: Terms and conditions for commission payments, including payment frequency, method, and currency

7. Obligations of the Parties: Specific duties and responsibilities of each party in the commission sharing arrangement

8. Reporting and Documentation: Requirements for sales reporting, commission calculations, and supporting documentation

9. Term and Termination: Duration of the agreement and conditions for termination

10. Confidentiality: Provisions protecting confidential information shared between parties

11. Non-Competition and Non-Solicitation: Restrictions on competitive activities and customer solicitation

12. Governing Law and Jurisdiction: Specification of Philippine law as governing law and jurisdiction for dispute resolution

13. General Provisions: Standard clauses including force majeure, entire agreement, amendments, and notices