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1. Parties: Identification of the Principal and Sales Agent/Representative with complete legal names and addresses
2. Background: Context of the agreement, business relationship, and purpose of the commission arrangement
3. Definitions: Key terms used throughout the agreement including 'Commission', 'Products', 'Territory', 'Sales', 'Net Sales' etc.
4. Appointment and Territory: Formal appointment of the agent and definition of the geographical area or market segment covered
5. Term and Termination: Duration of the agreement, renewal terms, and conditions for termination
6. Commission Structure: Detailed explanation of commission rates, calculation methods, and payment terms
7. Payment Terms: Timeline for commission payments, currency, payment method, and handling of disputed amounts
8. Sales Agent's Obligations: Duties, responsibilities, performance targets, and conduct requirements
9. Principal's Obligations: Support, information, and resources to be provided by the principal
10. Reporting and Documentation: Requirements for sales reports, documentation, and record-keeping
11. Confidentiality: Protection of confidential information and trade secrets
12. Non-Competition: Restrictions on competing activities during and after the agreement
13. Dispute Resolution: Process for resolving disputes, including jurisdiction and applicable law
14. General Provisions: Standard clauses including notices, amendments, assignment, and severability
1. Training and Support: Details of training programs and ongoing support when the principal provides extensive training
2. Marketing and Advertising: Requirements and cost-sharing for marketing activities when joint promotional efforts are needed
3. Minimum Performance Requirements: Specific sales targets and consequences for not meeting them when performance benchmarks are crucial
4. Intellectual Property: Usage rights and restrictions for trademarks and other IP when brand representation is significant
5. Insurance Requirements: Specific insurance coverage requirements when the agent handles valuable products or significant transactions
6. Sub-agents: Rules regarding appointment and management of sub-agents when allowed
7. Post-Termination Obligations: Detailed procedures for handling pending commissions and transitions after contract end
8. Compliance with Islamic Banking Principles: Specific provisions ensuring compliance with Shariah principles when required
1. Schedule A - Commission Rates: Detailed breakdown of commission percentages for different products or sales volumes
2. Schedule B - Territory Description: Detailed description or map of the designated sales territory
3. Schedule C - Products: List of products or services covered by the agreement
4. Schedule D - Sales Targets: Specific sales targets and performance metrics
5. Schedule E - Reporting Templates: Standard forms and formats for sales reporting
6. Schedule F - Special Customer Accounts: List of any reserved or special customer accounts with specific commission arrangements
7. Appendix 1 - Code of Conduct: Detailed guidelines for professional conduct and business practices
8. Appendix 2 - Commission Calculation Examples: Sample calculations showing how commissions will be determined in various scenarios
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