Commission Agreement
COMMISSION AGREEMENT
This Commission Agreement ("Agreement") is made and entered into as of the date of the last signature below (the "Effective Date") between [Your Name], hereinafter referred to as the "Principal," and [Agent's Name], hereinafter referred to as the "Agent."
1. APPOINTMENT AND ACCEPTANCE
1.1. Appointment
The Principal, within the context and powers bestowed by this Agreement, is hereby making it clear that the Agent has been delegated as its non-exclusive sales representative. This term will be effective for the entire duration as stipulated in this agreement. Concurrently, the Agent acknowledges and accepts the appointment in the role as the non-exclusive sales representative entrusted by the Principal under this Agreement.
1.2. Scope of Representation
This agreement outlines the Agent's duties which include promoting the Principal's products across different platforms and markets, maintaining customer relations, ensuring customer issues are handled efficiently, and adhering strictly to all the terms of this Agreement.
1.3. Territory
The individual referred to as the Agent will have a specified area, known as the sales territory, in which they are permitted to operate. This territory is specifically outlined as follows:
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Sales Territory:
The Agent's sales activities shall be bound and limited to this specified territory. It is further agreed between the Principal and the Agent that the Agent shall refrain from engaging in sales activities in regions beyond this pre-decided territory unless prior authorization has been granted by the Principal.
2. COMMISSIONS
2.1. Commission Rate
The Principal has made an agreement which stipulates that the Agent will receive a commission payment. The amount of this commission will be based on each sale the Agent has either directly or indirectly facilitated. The commission agreed upon has been predefined at a rate equivalent to 10% percent of the total value of each sale, but it is important to note that both taxes and shipping fees are excluded from the calculated commission amount.
2.2. Payment Calculation
The process of calculating commissions will be carried out based on the total amount of net sales. This is done after the deduction of any taxes that may be applicable and any fees related to shipping that may be incurred. This total net sale amount, post-deduction of taxes and shipping fees, will serve as the base upon which the commissions are calculated.
3. PAYMENT
3.1. Timing of Payments
The agreed-upon commission payments that are due to the Agent are to be paid within a certain number of days. This number of days is defined as 30 and is counted from the last day of each completed calendar month. This means that within 30 days after the conclusion of a month, all commissions owed should be remitted to the Agent.
3.2. Late Payments
If the Principal fails to make any payment due on the specified date, it is agreed that the Principal will be responsible for paying interest. This interest, to be applied to the amount overdue, will be accrued from the payment's initial due date and continue to accumulate until the outstanding payment has been made in full. The rate at which this interest will be calculated is set at an agreed-upon 5%.
4. CONFIDENTIALITY
4.1. Confidential Information
The Agent acknowledges that, in the course of performing its duties under this Agreement, it may obtain information relating to the Principal and its business, including, without limitation, technical, marketing, financial, employee, planning, and other confidential or proprietary information, that is of great value to the Principal ("Confidential Information").
4.2. Non-Disclosure Obligation
The Agent agrees to maintain strict confidentiality regarding any Confidential Information obtained during the term of this Agreement and not to disclose, directly or indirectly, such information to any third party without the prior written consent of the Principal.
5. TERMINATION
5.1. Termination
This Agreement holds the provision for termination by either involved party, provided that they issue written notice to the opposing party. This termination notice should be delivered with a notice period constituting [Number] days. Moreover, it is essential to note that the cause behind this termination action can range broadly, as this Agreement does not necessitate a specific reason for its dissolution.
5.2. Immediate Termination
Notwithstanding the above, either party may immediately terminate this Agreement in the event of a material breach of any provision herein by the other party, provided that written notice of such breach is given to the breaching party.
6. GOVERNING LAW
6.1. Governing Law
The Agreement in question shall be guided, interpreted, and regulated in accordance and agreement with the established laws and regulations of the specified [State or Country]. This stipulation applies irrespective of any principles or rules pertaining to conflict of law that the respective [State/Country] may uphold.
SIGNATURES
This Agreement has been officially signed and approved by all the parties involved.
[Your Name]
[Your Company Name]
[DATE]
[AGENT'S NAME]
[AGENT'S COMPANY NAME]
[DATE]
