Free Commission Sharing Agreement Template
COMMISSION SHARING AGREEMENT
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This Commission Sharing Agreement ("Agreement") is entered into as of [Effective Date], by and between:
[Commission Provider], a [description of a legal entity, e.g., corporation, partnership] organized and existing under the laws of [jurisdiction], with its principal place of business located at [address] ("Provider"),
and
[Commission Recipient], a [description of a legal entity, e.g., individual, corporation, partnership] organized and existing under the laws of [jurisdiction], with its principal place of business located at [address] ("Recipient").
Provider and Recipient may be collectively referred to herein as the "Parties."
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I. Purpose
This Agreement aims to provide clarity and explicitly outline the terms and conditions applicable to the distribution of commissions. These commissions in question are garnered through the sale of insurance policies. The entities involved in this commission-sharing arrangement are the Provider and Recipient. The Provider refers to an established insurance agency that possesses all the necessary legal authorizations to conduct business operations in the insurance sector. On the other hand, the Recipient denotes an independent insurance agent who operates autonomously within the industry.
II. Commission Structure
II.I Commission Percentage: Provider agrees to pay Recipient a commission equal to 10% of the net sales generated from all online transactions completed through Recipient's unique affiliate link or referral code.
II.II Calculation of Commission: Commissions will be calculated based on the net sales amount received by the Provider, excluding any returns, discounts, or refunds. The net sales amount shall be determined after deducting any applicable taxes, shipping fees, and other expenses.
III. Roles and Responsibilities
III.I Provider's Responsibilities: Provider shall be responsible for manufacturing and delivering the products/services to customers promptly. Provider shall also handle customer inquiries, complaints, and returns professionally and efficiently. Additionally, the Provider shall provide the Recipient with necessary sales materials, including brochures, catalogs, and product samples, as well as comprehensive training and ongoing support to facilitate the sales process and ensure the Recipient's success in promoting and selling the Provider's products/services.
III.II Recipient's Responsibilities: The recipient shall be responsible for actively generating leads through various marketing channels, such as social media, email campaigns, and networking events. Recipient shall diligently promote the products/services offered by Provider, ensuring accurate representation and highlighting key features and benefits to potential customers. Recipient agrees to adhere to any sales targets or performance metrics specified by Provider, striving to meet or exceed them within the agreed-upon timeframe.
IV. Payment Terms
IV.I Payment Schedule: The payment of commissions will occur every month, a process that will take place within 15 days after the conclusion of each month. The designated method for making these payments will be through a direct deposit to the bank account previously specified by the Recipient.
IV.II Commission Statements: Provider shall provide Recipient with detailed commission statements along with each payment, specifying the sales transactions, commission rates, and any deductions or adjustments made.
V. Commission Disputes
V.I Notification: In the event of a dispute regarding commission calculations or payments, the disputing party shall notify the other party in writing within 30 days of becoming aware of the dispute.
V.II Resolution: The Parties agree to resolve any commission disputes through good faith negotiations. If the dispute cannot be resolved amicably, either party may pursue legal remedies as provided by law.
VI. Confidentiality
VI.I Confidential Information: During the term of this Agreement, both Parties may have access to confidential information belonging to the other Party, including but not limited to customer lists, pricing strategies, and sales data. Each Party agrees to keep such information confidential and not disclose it to any third party without the other Party's prior written consent.
VI.II Non-Disclosure Agreement: Recipient shall sign a separate non-disclosure agreement (NDA) provided by Provider, which shall govern the protection and use of confidential information exchanged between the Parties.
VII. Termination
VII.I Termination Clause: This Agreement may be terminated by either Party upon 14 days written notice to the other Party. Termination shall not relieve either Party of any obligations accrued before the effective date of termination.
VII.II Effect of Termination: Upon termination of this Agreement, any outstanding commissions owed to the Recipient shall be paid within 14 days of the termination date.
VIII. Governing Law and Jurisdiction
VIII.I Governing Law: This Agreement shall be governed by and construed by the laws of [jurisdiction].
VIII.II Jurisdiction: Any disputes arising out of or related to this Agreement shall be subject to the exclusive jurisdiction of the courts of [jurisdiction].
IN WITNESS WHEREOF, the Parties have executed this Commission Sharing Agreement as of the Effective Date first above written.
[Your Name]
Commission Provider
[Your Company Address], if applicable
[Date Signed]
[Your Name]
Commission Recipient
[Your Company Address], if applicable
[Date Signed]
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