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Memorandum Of Agreement For Sales Commission
"I need a Memorandum Of Agreement For Sales Commission for our software company that includes a tiered commission structure (2% for first $100k, 3% for $100k-$500k, 4% above $500k) and covers both direct sales and referral partnerships, to be effective from January 2025."
1. Parties: Identification of the company and sales representative
2. Background: Context of the agreement and relationship between parties
3. Definitions: Key terms used throughout the agreement including commission-specific terminology
4. Commission Structure: Detailed explanation of commission rates, calculation methods, and qualifying sales
5. Payment Terms: Timing and method of commission payments, including payment frequency and conditions
6. Term and Termination: Duration of agreement and conditions for termination, including post-termination commission rights
7. Governing Law: Specification of jurisdiction and applicable laws governing the agreement
1. Non-Compete: Restrictions on competitive activities and protection of business interests during and after the agreement
2. Draw Against Commission: Terms for advanced payments against future commissions and reconciliation procedures
3. Territory Assignment: Definition and limitations of geographic or customer segment assignments
4. Performance Metrics: Sales targets, performance expectations, and consequences of not meeting targets
1. Commission Rate Schedule: Detailed breakdown of commission rates by product/service category
2. Sales Territory Map: Geographic definition of sales territory with boundary specifications
3. Product List: Comprehensive list of products/services covered by the commission agreement
4. Performance Targets Schedule: Specific sales goals, metrics, and associated commission tiers or bonuses
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