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Independent Contractor Commission Agreement
"I need an Independent Contractor Commission Agreement for our software sales business, starting March 2025, with tiered commission rates based on sales volume and specific territory assignments for the Auckland region."
1. Parties: Identifies the contracting parties - the principal company and the independent contractor
2. Background: Sets out the context of the agreement, including the nature of the principal's business and the contractor's services
3. Definitions: Defines key terms used throughout the agreement
4. Appointment and Term: Establishes the contractor's appointment, term of engagement, and any renewal provisions
5. Independent Contractor Status: Clearly establishes the relationship as independent contractor, not employment
6. Services: Details the services to be provided by the contractor
7. Commission Structure: Defines the commission rates, calculation methods, and payment terms
8. Payment Terms: Specifies payment timing, invoicing requirements, and tax obligations
9. Obligations of the Contractor: Lists the contractor's duties, responsibilities, and performance standards
10. Obligations of the Principal: Details the company's responsibilities to the contractor
11. Intellectual Property: Addresses ownership and use of intellectual property created during the engagement
12. Confidentiality: Protects confidential information of both parties
13. Termination: Sets out grounds and process for ending the agreement
14. Post-Termination Obligations: Specifies obligations that survive after the agreement ends
15. General Provisions: Includes standard clauses like governing law, notices, and entire agreement
1. Non-Compete: Restricts contractor from competing activities - include when contractor will have access to sensitive business information or significant client contact
2. Insurance Requirements: Specifies required insurance coverage - include when services involve significant risks or regulatory requirements
3. Performance Targets: Sets specific performance metrics - include when commission structure is tied to performance benchmarks
4. Expenses: Details reimbursable expenses - include when contractor may incur expenses on behalf of principal
5. Sub-contracting: Addresses ability to sub-contract services - include when contractor might need to delegate work
6. Territory Rights: Defines geographical areas of operation - include when territory exclusivity is granted
7. Training Requirements: Specifies required training or certifications - include for regulated industries or specific skill requirements
8. Dispute Resolution: Details specific dispute resolution procedures - include for high-value or complex arrangements
1. Schedule 1 - Services Description: Detailed description of services to be provided
2. Schedule 2 - Commission Rates and Calculations: Detailed breakdown of commission structures, including any tiered rates or bonus schemes
3. Schedule 3 - Territory Map: Geographical areas covered by the agreement, if applicable
4. Schedule 4 - Performance Metrics: Specific KPIs or targets for performance measurement
5. Schedule 5 - Approved Expenses: List of pre-approved expenses and reimbursement procedures
6. Appendix A - Required Forms: Standard forms for reporting, invoicing, or performance tracking
7. Appendix B - Compliance Requirements: Industry-specific compliance requirements or standards
Authors
Real Estate
Insurance
Financial Services
Retail
Technology Sales
Professional Services
Recruitment
Advertising and Media
Manufacturing
Distribution and Wholesale
Automotive Sales
Telecommunications
Legal
Human Resources
Sales Operations
Finance
Compliance
Commercial Operations
Business Development
Procurement
Administration
Sales Director
Business Development Manager
Human Resources Director
Legal Counsel
Commercial Manager
Procurement Manager
Operations Director
Finance Manager
Compliance Officer
Contract Administrator
Sales Operations Manager
Regional Manager
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