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Contractor Sales Commission Agreement Template for New Zealand

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Key Requirements PROMPT example:

Contractor Sales Commission Agreement

"I need a Contractor Sales Commission Agreement for my software company that includes a tiered commission structure (5-15% based on sales volume) and covers both software license sales and implementation services, with a special focus on protecting our intellectual property and customer data."

Document background
The Contractor Sales Commission Agreement is essential for businesses in New Zealand that engage independent sales contractors rather than employees for their sales operations. This document is particularly relevant when companies want to expand their sales reach without increasing their permanent workforce, or when seeking flexible sales arrangements with performance-based compensation. The agreement covers crucial aspects such as commission structures, sales territories, performance metrics, and payment terms while ensuring compliance with New Zealand's contractor regulations and commercial law framework. It's designed to protect both parties' interests while providing clear guidelines for the sales relationship, making it suitable for various industries from retail to professional services. The agreement is structured to accommodate both individual contractors and those operating through their own companies, with flexibility to adjust commission rates and sales targets through attached schedules.
Suggested Sections

1. Parties: Identifies the contracting parties - the company and the independent sales contractor

2. Background: Outlines the context of the agreement, including the company's business and the contractor's intended sales role

3. Definitions: Defines key terms used throughout the agreement, including 'Commission', 'Sales', 'Territory', and 'Products'

4. Appointment and Status: Establishes the contractor's appointment as an independent sales contractor and confirms their self-employed status

5. Term and Termination: Specifies the duration of the agreement and circumstances for termination by either party

6. Contractor Obligations: Details the contractor's responsibilities, sales targets, and performance standards

7. Company Obligations: Outlines the company's responsibilities, including support, training, and information provision

8. Commission Structure: Defines how commission is calculated, earned, and paid

9. Payment Terms: Specifies payment frequency, method, and handling of expenses

10. Intellectual Property: Addresses usage of company trademarks, logos, and promotional materials

11. Confidentiality: Protects company's confidential information and trade secrets

12. Non-Competition and Non-Solicitation: Restricts contractor's competitive activities during and after the agreement

13. Dispute Resolution: Establishes procedures for resolving disagreements

14. General Provisions: Includes standard clauses like governing law, entire agreement, and amendments

Optional Sections

1. Territory Rights: Defines exclusive or non-exclusive sales territories when geographical restrictions apply

2. Minimum Performance Requirements: Specifies minimum sales targets when the agreement includes performance-based continuation

3. Training Requirements: Details mandatory training programs when specific product knowledge or certification is required

4. Marketing Support: Outlines marketing assistance and materials when the company provides significant marketing support

5. Insurance Requirements: Specifies required insurance coverage when the contractor needs professional liability or other insurance

6. Subcontracting: Addresses the ability to subcontract when permitted by the company

7. Client Ownership: Determines ownership of client relationships when relevant to the sales structure

8. Post-Termination Commission: Handles trailing commissions when payments may continue after agreement termination

Suggested Schedules

1. Schedule 1 - Commission Rates: Detailed breakdown of commission percentages for different products or services

2. Schedule 2 - Product List: Comprehensive list of products or services the contractor is authorized to sell

3. Schedule 3 - Territory Map: Geographical definition of sales territory if applicable

4. Schedule 4 - Sales Targets: Specific sales targets and any associated bonus structures

5. Schedule 5 - Reporting Templates: Standard forms for sales reporting and commission calculations

6. Appendix A - Code of Conduct: Company's sales practices and ethical guidelines

7. Appendix B - Expense Policy: Guidelines for claiming and reimbursing approved expenses

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions





























Clauses


































Relevant Industries

Retail

Real Estate

Insurance

Financial Services

Technology

Manufacturing

Pharmaceutical

Telecommunications

Professional Services

Consumer Goods

Industrial Equipment

Software and SaaS

Medical Devices

Construction Materials

Automotive

Relevant Teams

Sales

Legal

Human Resources

Finance

Operations

Compliance

Commercial

Business Development

Contract Administration

Revenue Operations

Relevant Roles

Sales Director

Commercial Manager

Business Development Manager

Sales Operations Manager

Contract Manager

Legal Counsel

HR Director

Chief Revenue Officer

Sales Representative

Channel Manager

Regional Sales Manager

Commission Administrator

Compliance Officer

Chief Financial Officer

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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