The Sales Commission Agreement is a crucial document used to formalize the relationship between companies (principals) and their sales representatives or agents in Belgium. This agreement is particularly important as it must comply with the strict requirements of Belgian Commercial Agency Law, which implements EU Directive 86/653/EEC and provides significant protections for commercial agents. The document is essential when engaging sales representatives who will sell products or services on a commission basis, whether as independent agents or employed representatives. It covers critical aspects such as commission calculations, territory rights, performance metrics, and termination provisions, with special attention to mandatory Belgian law requirements regarding notice periods and goodwill indemnity. The agreement is designed to protect both parties' interests while ensuring compliance with Belgian and EU regulations governing commercial agency relationships.
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1. Parties: Identification of the Principal and the Sales Agent/Representative, including full legal names, registered addresses, and company registration numbers
2. Background: Context of the agreement, nature of the Principal's business, and purpose of engaging the Sales Agent
3. Definitions: Definitions of key terms used throughout the agreement, including 'Territory', 'Products', 'Customers', 'Commission', and 'Sales'
4. Appointment and Territory: Scope of the agent's appointment, exclusivity status, and defined geographical territory
5. Agent's Rights and Obligations: Detailed responsibilities, performance standards, reporting requirements, and compliance obligations
6. Principal's Rights and Obligations: Principal's commitments, support provisions, and information sharing requirements
7. Commission Structure: Commission rates, calculation methods, and payment terms in compliance with Belgian law
8. Payment Terms: Timing of commission payments, currency, payment methods, and handling of disputed amounts
9. Term and Termination: Duration of agreement, notice periods, and termination conditions as per Belgian Commercial Agency Law
10. Post-Termination Provisions: Handling of pending commissions, goodwill indemnity, and post-termination obligations
11. Confidentiality: Protection of confidential information and trade secrets
12. Governing Law and Jurisdiction: Specification of Belgian law as governing law and jurisdiction for disputes
1. Non-Compete Clause: Restrictions on agent's competitive activities during and after the agreement, used when protecting specific business interests (must comply with Belgian law limitations)
2. Performance Targets: Specific sales targets and performance metrics, used when implementing performance-based commission structures
3. Training and Support: Details of training and support provided by the Principal, used for complex products or services
4. Expenses: Terms for reimbursement of agent's expenses, used when Principal agrees to cover certain costs
5. Sub-Agents: Terms for appointment and management of sub-agents, used when sub-agents are permitted
6. Insurance Requirements: Specific insurance coverage requirements, used for high-value or high-risk products
7. Data Protection: GDPR compliance provisions, used when personal data processing is involved
8. Marketing and Promotion: Terms for marketing activities and materials, used when agent has marketing responsibilities
1. Schedule 1 - Products and Services: Detailed list of products/services covered by the agreement, including pricing and specifications
2. Schedule 2 - Commission Rates: Detailed commission structure, including any variations by product, customer type, or volume
3. Schedule 3 - Territory Description: Detailed description of geographical territory, including any excluded areas or customers
4. Schedule 4 - Reporting Templates: Standard forms for sales reports, commission calculations, and other required reporting
5. Schedule 5 - Performance Metrics: Detailed KPIs and measurement criteria for performance evaluation
6. Appendix A - Customer List: List of existing customers or assigned accounts, if applicable
7. Appendix B - Sales Procedures: Detailed sales processes and procedures to be followed by the agent
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