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Sales Rep Agreement
"I need a Sales Rep Agreement for my tech company based in Manila, appointing an exclusive sales representative for our software products in the Visayas region, with a minimum sales target of 5M PHP quarterly and a graduated commission structure starting from March 2025."
1. Parties: Identification of the Principal company and the Sales Representative, including complete legal names and addresses
2. Background: Context of the agreement, nature of the Principal's business, and purpose of engaging a sales representative
3. Definitions: Key terms used throughout the agreement, including Territory, Products, Customers, Commission, etc.
4. Appointment and Territory: Formal appointment of the representative and definition of the geographical territory or market segment
5. Rights and Obligations of Sales Representative: Core duties, sales targets, reporting requirements, and professional conduct expectations
6. Principal's Obligations: Support, training, materials, and information to be provided by the principal
7. Commission Structure: Calculation method, payment terms, and conditions for earning commission
8. Term and Termination: Duration of agreement, renewal terms, and grounds for termination
9. Confidentiality: Protection of trade secrets, customer information, and business data
10. Non-Competition and Non-Solicitation: Restrictions during and after the agreement term
11. Independent Contractor Status: Clarification of relationship as independent contractor, not employee
12. General Provisions: Standard clauses including governing law, notices, amendments, and dispute resolution
1. Product Training Requirements: Specific training obligations and certification requirements, include when products are technical or require specialized knowledge
2. Performance Metrics: Detailed KPIs and evaluation criteria, include for more structured sales programs
3. Marketing and Advertising: Guidelines for marketing activities and brand usage, include when rep will conduct marketing
4. Sub-agents: Terms for appointing sub-agents, include when sub-agents are permitted
5. Insurance Requirements: Specific insurance coverage requirements, include for high-value products or services
6. Data Protection: Detailed data handling procedures, include when handling sensitive customer data
7. Minimum Purchase Requirements: Minimum sales quotas or targets, include for exclusive territories
8. Product Returns and Warranties: Handling of returns and warranty claims, include for physical products
9. Online Sales Provisions: Rules for online sales and digital platforms, include for e-commerce activities
1. Schedule A - Products and Services: Detailed list of products/services the representative is authorized to sell
2. Schedule B - Commission Rates: Detailed commission structure, including any variations by product or customer type
3. Schedule C - Territory Description: Detailed description of geographical boundaries or customer segments
4. Schedule D - Sales Targets: Specific sales targets and any associated bonus structures
5. Schedule E - Reporting Templates: Standard forms for sales reports and activity logging
6. Appendix 1 - Operating Procedures: Detailed procedures for order processing, customer service, and communication
7. Appendix 2 - Marketing Guidelines: Brand guidelines and approved marketing practices
8. Appendix 3 - Customer List: List of existing customers or assigned accounts
Authors
Manufacturing
Consumer Goods
Technology
Healthcare
Industrial Equipment
Electronics
Pharmaceuticals
Food and Beverage
Automotive
Construction Materials
Telecommunications
Software
Professional Services
Retail
Financial Services
Sales
Legal
Business Development
Commercial Operations
Contract Administration
Human Resources
Compliance
Finance
Operations
Channel Management
Sales Director
Business Development Manager
Commercial Director
Legal Counsel
Sales Operations Manager
Regional Sales Manager
Channel Manager
Chief Revenue Officer
Sales Representative
Account Executive
Territory Manager
Contract Administrator
Compliance Officer
HR Director
Chief Commercial Officer
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