Independent Contractor Sales Commission Agreement Template

INDEPENDENT CONTRACTOR SALES COMMISSION AGREEMENT

This Independent Contractor Sales Commission Agreement (the “Agreement”) is entered into as of this ______ day of __________________, 20____ (the “Effective Date”), by and between:

COMPANY: ________________________________________, a company organized and existing under the laws of __________________, with its principal place of business located at ________________________________________ (“Company”),

AND

CONTRACTOR: ________________________________________, an individual/entity residing/located at ________________________________________ (“Contractor”).

The Company and Contractor may be referred to individually as a “Party” and collectively as the “Parties.”

1. ENGAGEMENT AND SERVICES

The Company hereby engages the Contractor as an independent contractor to perform sales and business development services related to the Company’s products/services (the “Services”). The Contractor agrees to provide such services in a professional and diligent manner, consistent with the standards of the industry.

2. INDEPENDENT CONTRACTOR STATUS

The Parties agree that the Contractor is an independent contractor and not an employee, partner, or joint venturer of the Company. The Contractor shall be solely responsible for the payment of all federal, state, and local taxes, and the Contractor shall not be entitled to any employee benefits, including but not limited to health insurance, retirement plans, or paid time off.

3. COMMISSION STRUCTURE

In consideration for the services rendered, the Company shall pay the Contractor a commission as follows:

• Commission Rate: ______% of the Net Sales price of products/services sold by the Contractor.
• Definition of Net Sales: Net Sales shall be defined as the gross invoice amount less any returns, allowances, discounts, shipping, or taxes.
• Payment Schedule: Commissions shall be paid on a [Monthly/Quarterly] basis, payable within ______ days following the end of the payment period, provided the Company has received full payment from the customer.

4. EXPENSES

Unless otherwise agreed upon in writing by the Company, the Contractor shall be responsible for all costs and expenses incurred in the performance of their duties, including, but not limited to, travel, lodging, communication, and marketing materials.

5. CONFIDENTIALITY AND NON-DISCLOSURE

The Contractor acknowledges that in the course of providing services, they may have access to the Company’s trade secrets, customer lists, and proprietary information. The Contractor agrees to maintain the strict confidentiality of all such information and shall not disclose or use it for any purpose outside the scope of this Agreement without prior written consent from the Company.

6. TERM AND TERMINATION

This Agreement shall commence on the Effective Date and shall continue until terminated by either party. Either party may terminate this Agreement upon ______ days' written notice to the other party. Upon termination, the Contractor shall be entitled to commissions earned on sales finalized prior to the effective date of termination.

7. GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State/Province of __________________, without regard to its conflict of law principles.

8. ENTIRE AGREEMENT

This Agreement constitutes the entire agreement between the Parties and supersedes any prior understandings or agreements, whether written or oral. No modification or amendment to this Agreement shall be effective unless in writing and signed by both Parties.

9. INDEMNIFICATION

The Contractor agrees to indemnify, defend, and hold harmless the Company from and against any and all claims, damages, or liabilities arising out of the Contractor’s acts or omissions in the performance of this Agreement.

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IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.

COMPANY:

Signature: ________________________________________

Name: ________________________________________

Title: ________________________________________

CONTRACTOR:

Signature: ________________________________________

Name: ________________________________________

Tax ID/Social Security Number: ________________________________________