Common use of Representative Commissions Clause in Contracts

Representative Commissions. In the event GCT directly supplies Products to a Customer in the Territory but DISTRIBUTOR acts as a sales representative with respect to such Customer by providing services that include, without limitation, account mining, customer communication and customer support, GCT shall pay to DISTRIBUTOR the “Representative Commission” set forth in Attachment #1. In the event DISTRIBUTOR wishes to distribute Products to a Customer whose major design, manufacturing or procurement decisions are made within the Territory, but whose purchase of Products is made by a subsidiary or affiliate located outside the Territory (such that the Customer does not technically satisfy the definition of Customer set forth in this Agreement) then with GCT’s prior written approval (a) DISTRIBUTOR shall collaborate with local distributor assigned by GCT in the region that includes the subsidiary or affiliate’s place of business to sell the Products to such Customer; and (b) GCT shall pay to DISTRIBUTOR a Representative Commission in connection with the sale, as set forth in Attachment # 1.