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Commission Agreement with Indemnity Provision

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Commission Agreement with Indemnity Provision Powered By Docstoc
					This 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 particular agreement contains an indemnity
clause whereby both parties agree to hold each other harmless for any act that results
in liability. This document should be used by small businesses and other entities that
want to pay employees or agents on a commission basis while protecting each other
with an indemnity clause.
               COMMISSION AGREEMENT WITH INDEMNITY PROVISION

THIS COMMISSION AGREEMENT (hereinafter called as “Agreement”) is made as of ____
[Month] ____ [Date], 20____, by and between ______________________ [Instruction: Insert
the      name       of    company]       ("Company"),       with     its    principal     offices    at
___________________________________________ [Instruction: Insert the address of
company], and ___________________ [Instruction: Insert the name of agent] ("Agent"), with
its principal offices at _______________________________________________ [Instruction:
Insert the address of agent], (hereinafter referred to as "Party', or, collectively, as the "Parties').

WHEREAS, Company is engaged in the business of marketing and sale of certain products
and/or services; and

WHEREAS, Agent desires to sell 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] Company hereby appoints
      Agent as an authorized _________________, [Instruction: Choose the appropriate:
      exclusive or non- exclusive] independent representative to sell and promote, products and/or
      services provided by Company which are specified in Exhibit A (hereinafter referred to as
      “Services”), in the territories described in Exhibit A (hereinafter referred to as "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:
      ___________________________________________________________________________
      ___________________________________________________________________________
      ___________________________________________________________________________
      __________________________________________________________________________.


© Copyright 2012 Docstoc Inc.                                                              2
    [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 venture 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.
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

    Agent shall bear any and all costs or expenses incurred during the performance under this
    Agreement.



© Copyright 2012 Docstoc Inc.                                                        3
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
    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
				
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Description: This 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 particular agreement contains an indemnity clause whereby both parties agree to hold each other harmless for any act that results in liability. This document should be used by small businesses and other entities that want to pay employees or agents on a commission basis while protecting each other with an indemnity clause.