The Commission Share Agreement is a crucial document for businesses operating in Indonesia that wish to establish commission-based relationships with agents, representatives, or service providers. This agreement type is commonly used when one party agrees to pay another a percentage-based compensation for successful business activities, such as sales, client acquisition, or service provision. The document must comply with Indonesian law, including the Civil Code (Kitab Undang-undang Hukum Perdata), employment regulations, and Bank Indonesia's currency requirements. It typically includes detailed provisions for commission calculation, payment terms, performance standards, and reporting requirements, while ensuring compliance with local tax regulations and business practices. The agreement is particularly important for protecting both parties' interests in commission-based business relationships while maintaining legal compliance in the Indonesian jurisdiction.
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1. Parties: Identification of all parties to the agreement, including their legal status and registered addresses
2. Background: Context of the agreement and the business relationship between the parties
3. Definitions: Definitions of key terms used throughout the agreement
4. Appointment and Scope: Details of the appointment and the scope of services/activities covered by the commission arrangement
5. Commission Structure: Detailed explanation of how commission is calculated, including rates and basis
6. Payment Terms: Terms and conditions for commission payments, including currency, payment method, and timing
7. Obligations of the Parties: Specific duties and responsibilities of each party under the agreement
8. Term and Duration: Period of the agreement, including start date and any renewal provisions
9. Reporting and Audit Rights: Requirements for financial reporting and rights to audit commission calculations
10. Confidentiality: Provisions protecting confidential information shared during the course of the agreement
11. Termination: Circumstances under which the agreement can be terminated and the process for termination
12. Governing Law and Dispute Resolution: Specification of Indonesian law as governing law and dispute resolution procedures
13. General Provisions: Standard boilerplate clauses including notices, amendments, and severability
1. Intellectual Property Rights: Required when the commission arrangement involves the use or creation of intellectual property
2. Non-Competition: Include when parties wish to restrict competitive activities during and after the agreement
3. Force Majeure: Important when parties want specific provisions for unforeseeable circumstances
4. Data Protection: Required when personal data processing is involved in the commission arrangement
5. Insurance: Include when specific insurance requirements need to be maintained by either party
6. Currency Exchange Provisions: Required for international agreements where currency conversion is relevant
7. Anti-Corruption Compliance: Important when dealing with international parties or government-related transactions
8. Change of Control: Include when parties want specific provisions regarding ownership changes
1. Commission Rates Schedule: Detailed breakdown of commission rates, tiers, and calculation methods
2. Product or Service Schedule: List of products or services covered by the commission arrangement
3. Territory Schedule: Definition of geographical areas covered by the agreement, if applicable
4. Reporting Template: Standard format for regular commission reports and calculations
5. Key Performance Indicators: Metrics and targets that may affect commission rates or payments
6. Compliance Requirements: Specific regulatory or compliance requirements under Indonesian law
7. Bank Account Details: Designated bank accounts for commission payments
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