The Sales Commission Agreement is essential for businesses operating in Malta that engage external sales representatives or agents to promote and sell their products or services. This document is particularly important given Malta's specific commercial agency regulations and its position as an EU member state. The agreement should be used when establishing a formal sales relationship where commission-based compensation is involved. It typically includes detailed provisions about commission structures, sales territories, performance metrics, and reporting requirements. The document must comply with Malta's Commercial Code (Chapter 13) and Commercial Agency Regulations (S.L. 13.16), while also considering EU regulations that may affect commercial agency relationships. This type of agreement is crucial for protecting both the principal's business interests and the agent's rights to commission, while clearly defining the scope of authority and responsibilities of each party.

1. Parties: Identification of the Principal and the Sales Agent/Representative, including full legal names and registered addresses

2. Background: Context of the agreement, brief description of the Principal's business and the purpose of appointing the Sales Agent

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

4. Appointment and Territory: Formal appointment of the Sales Agent and definition of the geographic or customer territory covered

5. Term and Duration: Period of the agreement, including start date and initial term

6. Agent's Rights and Obligations: Detailed responsibilities of the Sales Agent, including sales targets, reporting requirements, and conduct standards

7. Principal's Rights and Obligations: Principal's commitments, including product information, support, and training provisions

8. Commission Structure: Detailed explanation of commission rates, calculation methods, and payment terms

9. Payment Terms: Specifics about commission payment timing, currency, method of payment, and handling of disputed amounts

10. Intellectual Property: Protection and usage rights of the Principal's trademarks, logos, and other IP

11. Confidentiality: Obligations regarding confidential information and trade secrets

12. Termination: Grounds for termination, notice periods, and consequences of termination

13. Post-Termination: Obligations and rights after termination, including commission on pending sales

14. General Provisions: Standard clauses including governing law, notices, amendments, and entire agreement