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Exclusive Commission Agreement
"I need an Exclusive Commission Agreement for my Jakarta-based manufacturing company to appoint a sales agent for distributing industrial machinery across East Java, with a 15% commission rate and minimum sales targets, starting March 2025."
1. Parties: Identification of the principal and commission agent, including their full legal names, registration numbers, and addresses
2. Background: Context of the agreement, brief description of the business relationship and parties' intentions
3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules of interpretation
4. Appointment and Scope: Terms of exclusive appointment, territory coverage, and products/services included
5. Duration and Term: Initial term of the agreement and any renewal provisions
6. Commission Structure: Detailed commission rates, calculation methods, and any variations based on performance
7. Payment Terms: Timeline for commission payments, currency, payment methods, and handling of taxes
8. Rights and Obligations of the Agent: Detailed responsibilities, performance standards, and reporting requirements
9. Rights and Obligations of the Principal: Support to be provided, information sharing, and other principal obligations
10. Exclusivity Provisions: Specific terms of exclusivity, including any limitations or exceptions
11. Intellectual Property: Usage rights for trademarks, logos, and other IP during the agreement term
12. Confidentiality: Protection of confidential information and trade secrets
13. Termination: Grounds for termination, notice periods, and consequences of termination
14. Governing Law and Dispute Resolution: Choice of Indonesian law and dispute resolution mechanisms
15. General Provisions: Standard boilerplate clauses including notices, amendments, and severability
1. Performance Targets: Specific sales or performance targets, used when the principal wants to set measurable objectives
2. Training and Support: Detailed provisions for training and support, relevant when complex products/services are involved
3. Sub-agents: Terms for appointing sub-agents, if permitted under the arrangement
4. Insurance: Insurance requirements, particularly relevant for high-value products or services
5. Data Protection: Specific data protection provisions, important when personal data processing is involved
6. Non-Competition: Post-termination restrictions, if applicable under Indonesian law
7. Force Majeure: Provisions for unforeseen circumstances affecting performance
8. Change of Control: Provisions dealing with ownership changes in either party
1. Schedule 1 - Products/Services: Detailed list of products or services covered by the agreement
2. Schedule 2 - Territory: Detailed definition of the exclusive territory, including maps or specific geographic boundaries
3. Schedule 3 - Commission Rates: Detailed commission structure, including any variations or special rates
4. Schedule 4 - Performance Metrics: Specific KPIs and measurement criteria
5. Schedule 5 - Reporting Templates: Standard formats for regular reporting requirements
6. Schedule 6 - Trademark Usage Guidelines: Guidelines for use of principal's trademarks and branding
7. Appendix A - Required Licenses: List of required regulatory licenses and permits for Indonesia
8. Appendix B - Contact Details: Key contact persons and their details for both parties
Authors
Manufacturing
Consumer Goods
Industrial Products
Technology
Professional Services
Financial Services
Real Estate
Healthcare
Automotive
Energy
Telecommunications
Retail
Export/Import
Agriculture
Construction
Legal
Sales
Business Development
Finance
Operations
Compliance
Commercial
Corporate Affairs
Contract Administration
International Trade
Chief Executive Officer
Commercial Director
Sales Director
Business Development Manager
Country Manager
Regional Sales Manager
Legal Counsel
Contracts Manager
Chief Financial Officer
Sales Operations Manager
Distribution Manager
Channel Manager
Compliance Officer
Corporate Secretary
Account Manager
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