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Independent Sales Commission Agreement
"I need an Independent Sales Commission Agreement for a technology software company based in Ontario, with a 15% commission structure for new clients and 10% for renewals, including non-compete provisions for the Greater Toronto Area."
1. Parties: Identifies the principal company and the independent sales representative
2. Background: Establishes context of the agreement and confirms independent contractor relationship
3. Definitions: Defines key terms used throughout the agreement including 'Territory', 'Products', 'Commissions', 'Customers'
4. Appointment and Territory: Defines the scope of appointment and geographical territory for sales activities
5. Commission Structure: Details the commission rates, calculation methods, and payment terms
6. Payment Terms: Specifies when and how commissions will be paid, including payment frequency and methods
7. Independent Contractor Status: Explicitly confirms the independent nature of the relationship and its implications
8. Duties and Responsibilities: Outlines the sales representative's specific obligations and performance expectations
9. Term and Termination: Specifies agreement duration and conditions for termination by either party
10. Confidentiality: Protects company's confidential information and trade secrets
11. Non-Solicitation: Prevents poaching of customers or employees during and after the agreement
12. Reporting Requirements: Details the sales activity reporting obligations of the representative
13. Dispute Resolution: Establishes process for resolving disagreements between parties
14. General Provisions: Standard boilerplate clauses including governing law, amendments, and notices
1. Non-Competition: Restricts representative from competing activities - only include if legally enforceable in the jurisdiction
2. Training Requirements: Specifies mandatory training programs - include if specific training is required
3. Minimum Performance Standards: Sets sales targets or quotas - include if specific performance metrics are required
4. Expense Reimbursement: Details which expenses may be reimbursed - include if any expenses will be covered
5. Insurance Requirements: Specifies required insurance coverage - include if representative must maintain specific insurance
6. Marketing and Advertising: Guidelines for promotional activities - include if representative will conduct marketing
7. Intellectual Property: Rules for using company's IP - include if representative will use company branding
8. Sub-agents: Rules about appointing sub-agents - include if sub-agents might be permitted
1. Schedule A - Commission Rates: Detailed breakdown of commission percentages for different products or services
2. Schedule B - Territory Description: Detailed description or map of the assigned sales territory
3. Schedule C - Product List: Complete list of products/services the representative is authorized to sell
4. Schedule D - Reporting Templates: Standard forms for required sales activity reporting
5. Schedule E - Performance Metrics: Specific sales targets and evaluation criteria if applicable
6. Appendix 1 - Expense Policy: Detailed policy on allowable expenses and reimbursement procedures if applicable
Authors
Retail
Manufacturing
Technology
Professional Services
Real Estate
Financial Services
Insurance
Telecommunications
Consumer Goods
Industrial Equipment
Medical Devices
Pharmaceutical
Software
Construction Materials
Automotive
Sales
Legal
Human Resources
Finance
Operations
Commercial
Business Development
Compliance
Contract Administration
Revenue Operations
Sales Director
Chief Revenue Officer
Business Development Manager
Sales Operations Manager
Channel Manager
Independent Sales Representative
Sales Agent
Commission-Based Sales Representative
Territory Sales Manager
Regional Sales Director
VP of Sales
Chief Commercial Officer
Contract Manager
Legal Counsel
HR Director
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