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Commission Share Agreement Template for Malaysia

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Key Requirements PROMPT example:

Commission Share Agreement

"I need a Commission Share Agreement for my Malaysian technology company to engage sales representatives who will sell our software products, with a tiered commission structure starting from January 2025 and including quarterly performance targets."

Document background
This Commission Share Agreement is designed for use in the Malaysian business environment where parties wish to formalize their commission-based business relationship. It is particularly relevant for arrangements where one party agrees to pay commission to another party for services such as sales, referrals, or business development. The document ensures compliance with Malaysian legal requirements, including the Contracts Act 1950, Employment Act 1955, and relevant tax regulations. It provides a comprehensive framework for commission calculations, payment terms, performance standards, and dispute resolution mechanisms, while addressing specific Malaysian market practices and business customs.
Suggested Sections

1. Parties: Identification of all parties to the agreement, including full legal names, registration numbers, and registered addresses

2. Background: Context of the agreement, business relationship between parties, and purpose of the commission sharing arrangement

3. Definitions and Interpretation: Definitions of key terms used in the agreement and rules for interpreting the agreement

4. Commission Structure: Detailed explanation of how commission is calculated, including rates, tiers, and any variations

5. Payment Terms: Timeline and method of commission payments, including currency, payment schedule, and payment methods

6. Obligations of the Principal: Responsibilities of the party paying the commission, including reporting, calculation, and payment obligations

7. Obligations of the Agent/Partner: Duties and responsibilities of the commission recipient, including performance requirements and reporting obligations

8. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

9. Confidentiality: Protection of confidential information shared between parties

10. Dispute Resolution: Process for resolving disagreements, including jurisdiction and governing law

11. General Provisions: Standard legal clauses including notices, amendments, assignment, and severability

Optional Sections

1. Non-Compete: Restrictions on competitive activities, used when parties want to prevent competition during and after the agreement

2. Territory Restrictions: Geographic limitations on where commission can be earned, used for territorial-based arrangements

3. Performance Targets: Specific goals or targets that must be met to earn commission, used in performance-based arrangements

4. Audit Rights: Right to audit commission calculations and relevant records, used in high-value or complex arrangements

5. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in long-term arrangements

6. Intellectual Property: Protection of IP rights, used when the arrangement involves branded products or services

7. Training and Support: Details of any training or support provided, used in arrangements where specific skills are required

Suggested Schedules

1. Commission Rates Schedule: Detailed breakdown of commission rates, including any variations based on product type, volume, or other factors

2. Product/Service List: List of products or services covered by the commission arrangement

3. Calculation Examples: Examples showing how commission will be calculated in different scenarios

4. Reporting Template: Standard format for commission reports and calculations

5. Territory Map: If applicable, maps or descriptions of territories covered by the agreement

6. Performance Metrics: Detailed KPIs and measurement criteria for performance-based commission

7. Administrative Procedures: Step-by-step procedures for commission reporting, calculation, and payment processing

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions

























Clauses




























Relevant Industries

Real Estate

Insurance

Financial Services

Retail

Manufacturing

Technology

Telecommunications

Automotive

Healthcare

Professional Services

Consumer Goods

Energy

Construction

Tourism and Hospitality

Relevant Teams

Sales

Legal

Finance

Human Resources

Business Development

Operations

Compliance

Commercial

Partner Relations

Accounts

Relevant Roles

Sales Director

Business Development Manager

Channel Partner Manager

Commission Administrator

Legal Counsel

Finance Manager

Account Executive

Sales Representative

Chief Financial Officer

Compliance Officer

HR Manager

Commercial Director

Operations Manager

Contract Manager

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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