This Commission Agreement is an agreement between two parties where one party sells, distributes or advertises goods or services on the other party�s behalf. Upon the sale of the goods or services, the party whom sold, distributed or advertised the goods, receives a share of the profits based on a percentage. This document has many customizable clauses, such as the type of goods or services to be sold, term, commission percentage, territory covered, and a non-competition clause. This document is ideal for small businesses or other entities located in Arizona who want to compensate their agents on a commission basis.
Docstoc Legal Agreements This Commission Agreement is an agreement between two parties where one party sells, s distributes or advertises goods or services on the other party� behalf. Upon the sale of the goods or services, the party whom sold, distributed or advertised the goods, receives a share of the profits based on a percentage. This document has many customizable clauses, such as the type of goods or services to be sold, term, commission percentage, territory covered, and a non-competition clause. This document is ideal for small businesses or other entities located in Arizona who want to compensate their agents on a commission basis. ® DISCLAIMERS: ALL INFORMATION AND FORMS ARE PROVIDED “AS IS” WITHOUT ANY WARRANTY OF ANY KIND, EXPRESS, IMPLIED, OR OTHERWISE, INCLUDING AS TO THEIR LEGAL EFFECT AND COMPLETENESS. They are for general guidance and should be modified by you o r your attorney to meet your specific needs and the laws of your state. Use at your own risk. 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All Rights Reserved COMMISSION AGREEMENT THIS COMMISSION AGREEMENT (hereinafter referred to as “Agreement”) is made as of ____ [Month] ____ [Date], 20____ [Year], by and between ______________________ [Instruction: Insert the name of company] (the “Company”), with its principal offices at ___________________________________________ [Instruction: Insert the address of company], and ___________________ [Instruction: Insert the name of agent] (the “Agent”), with its principal offices at _______________________________________________ [Instruction: Insert the address of agent], (hereinafter referred to as "Party'” or, collectively, as the “Parties”). WHEREAS, the Company is engaged in the business of marketing and sale of certain products and/or services and; WHEREAS, the Agent desires to sell the Company's such products and/or services in accordance with the terms and conditions set forth in this Agreement; NOW, THEREFORE, in consideration of the mutual agreements and covenants herein contained, the Parties hereto agree as follows: 1. Employment: [Instruction: Choose any one clause below] The Company hereby appoints the Agent as an authorized _________________, [Instruction: Choose the appropriate: exclusive or non- exclusive] independent representative to sell and promote products and/or services provided by the Company which are specified in Exhibit A (hereinafter referred to as the “Services”), in the territories described in Exhibit A, (hereinafter referred to as the "Territory"). [Comment: Use this clause if you wish to appoint the Agent for selling and promoting specific goods.] OR The Company appoints the Agent as its _________________ [Instruction: Choose the appropriate exclusive or non-exclusive] independent representative for the following purposes: ___________________________________________________________________________ ___________________________________________________________________________ [Comment: Use this clause if you wish to appoint the Agent to perform some specific duties.] 2. Independent Contractor: This Agreement shall not render the Agent an employee, partner, or joint venturer with the Company for any purpose. The Agent is and will remain an independent contractor in his or her relationship with the Company. The Company shall not be responsible for withholding taxes with respect to the Agent's compensation hereunder. The Agent shall have no claim against the Company hereunder or otherwise for vacation pay, sick leave, retirement benefits, social security, worker's compensation, health or disability benefits, unemployment insurance benefits, or employee benefits of any kind. © Copyright 2013 Docstoc Inc. registered document proprietary, copy not 2 3. Commission: For the Agent's services, the Company shall pay the Agent the following commission percentage: _______ (___ %) [Instruction: Insert the commission percentage, e.g., six (◊ 6%)] of the Agent's total sales. ___________________________________________________________________________ ___________________________________________________________________________ __________________________________________________________________________. [Instruction: Provide additional details if necessary.] 4. Reimbursement: [Instruction: Choose any one clause below] As part of the compensation to the Agent, the Agent shall also be reimbursed for the following expenses: ___________________________________________________________________________ [Instruction: Describe all expenses for which the Agent may be reimbursed.] The Company shall not be obligated to reimburse the Agent for any additional expenses incurred in the performance of services pursuant to this Agreement unless agreed in writing by the Company in advance. OR The Agent shall bear any and all costs or expenses incurred during the performance under this Agreement. 5. Terms and termination: [Instruction: Choose any one clause below] [Comment: Under this clause both Parties can terminate this agreement] This Agreement may be terminated by the written agreement of both Parties. In the event that either Party shall be in default of its material obligations under this Agreement and shall fail to remedy such default within ______ (__) [Instruction: Insert number of days, e.g., sixty (◊ 60)] days after receipt of written notice thereof, this Agreement shall terminate upon expiration of the ______ (__) [Instruction: Insert number of days, e.g., sixty (◊ 60)] days period. OR [Comment: Under this clause parties can terminate this agreement after the completion of the term of this agreement] This Agreement shall commence as of the effective date and shall continue in full force and effect for a period of _______ (___) [Instruction: Insert number of years, e.g., four (◊ 4)] years, and shall automatically renew for an additional _______ (___) [Instruction: Insert number of years, e.g., one (◊ 1)] year period, unless either Party provides written notice of © Copyright 2013 Docstoc Inc. registered document proprietary, copy not 3 non-renewal to the other party, not less than ______ (__) [Instruction: Insert number of days, e.g., sixty (◊ 60)] days prior to the expiration of term. 6. No Delegation: The rights and duties of the Agent under this Agreement may not be assigned or delegated without prior written consent of the Company. 7. Agreement not to compete: During the term hereof, and for ___________ (___) [Instruction: Insert number of months, e.g., eighteen (◊18)] months thereafter, within the geographical limit of _____________ [Instruction: Insert the County/Counties] county/counties, in the State of Arizona, the Agent shall not, directly or indirectly, enter into, or in any manner take part in, similar business, profession, or other endeavor, which competes with the Company. 8. Warranty against prior existing restrictions: The Agent represents and warrants to the Company that he/she is not a party to any agreement containing a non-competition clause or other restriction with respect to: a) The services that the Agent is required to perform hereunder. b) The use or disclosure of any information directly or indirectly relating to the Company’s business, or the services the Agent is required to render pursuant hereto. 9. Trade secrets: The Agent recognizes and acknowledges that it is essential to the Company to protect the confidentiality of its trade information: a) With respect to the Company’s special business techniques, analyses of the market, forms, software programs, list of patrons, and all other information regarding manufacture or distribution of products, the Agent acknowledges that all of such information: i. Belongs to the Company. ii. Constitutes specialized and highly confidential information not generally known in the industry. iii. Constitutes trade secrets of the Company. b) The Agent thus agrees to act as a Trustee of such information and of any other confidential information that he acquires in connection with his or her association with the Company. c) During the term hereof, and for ___________ (___) [Instruction: Insert number of months, e.g., fourteen (◊14)] months thereafter, the Agent shall not disclose such information to any person, firm, association, or other entity for any reason or purpose whatsoever, unless such information has already become common knowledge or unless the Agent is required to disclose it by lawful judicial process. The Agent shall immediately notify the Company of any actual or suspected unauthorized use or disclosure of confidential information, and shall cooperate with the Company in © Copyright 2013 Docstoc Inc. registered document proprietary, copy not 4 obtaining injunctive or other equitable relief and in any suit for damages. If the Agent receives a subpoena or other legal process seeking disclosure of confidential information, the Agent shall immediately notify the Company and cooperate fully with the Company in contesting such disclosure. 10. Notice: Any notice required or permitted under this Agreement or under state law shall be deemed sufficiently given or served if sent by United States certified mail, return receipt requested, addressed as follows: If to the Company: _____________________________________ _____________________________________ _____________________________________ _____________________________________ If to the Agent: _____________________________________ _____________________________________ _____________________________________ _____________________________________ [Instruction: Insert addresses to be used to receive notice] The Company and the Agent shall each have the right from time to time to change the place notice is to be given under this paragraph by written notice thereof to the other party. 11. Electronic Notice: (Optional) [Comment: Keep this clause if you would like to accept notice through emails] Both the Parties hereby agree to send and accept notices mentioned under section 10 through electronic emails. Below are email addresses s provided by both Parties for the purpose of sending and receiving notices: The Company email : _____________________________________ The Agent email : _____________________________________ [Instruction: Insert email addresses to be used to receive notice] 12. Severability: If any provision, paragraph, or subparagraph of this Agreement is adjudged by any lawful court to be void or unenforceable, in whole or in part, such adjudication shall not be deemed to affect the validity of the remainder of this Agreement. Any other provision and paragraph is declared to be separable from every other provision, paragraph, and subparagraph and constitutes a separate and distinct covenant. © Copyright 2013 Docstoc Inc. registered document proprietary, copy not 5 13. Jurisdiction: The place of origin of this Agreement is the state of Arizona, and it shall be governed in accordance with its laws. The lawful courts of the state of Arizona shall be the forums for the resolution of any disputes arising hereunder. In the event that litigation results from or arises out of this Agreement or the performance thereof, the Parties agree to reimburse the prevailing party's reasonable attorney's fees, court costs, and all other expenses, whether or not taxable by the court as costs, in addition to any other relief to which the prevailing party may be entitled. IN WITNESS WHEREOF, the Parties have hereunto executed this Agreement on ____ [Month] ____ [Date], 20____ [Year] For: COMPANY For: AGENT Signed:_______________________________ Signed:_________________________________ Name: Name: Title: Title: Date: Date: © Copyright 2013 Docstoc Inc. registered document proprietary, copy not 6 EXHIBIT A [Instruction: Insert a description of the services provided and the territory in which they will be provided] Services Territory © Copyright 2013 Docstoc Inc. registered document proprietary, copy not 7
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