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Independent Sales Rep Agreement
"I need an Independent Sales Rep Agreement for our software company that covers the South Island of New Zealand, with exclusive territory rights and a minimum annual sales target of $500,000, starting from March 2025."
1. Parties: Identifies the contracting parties - the company and the independent sales representative
2. Background: Outlines the context of the agreement, including the company's business and its desire to engage independent sales representatives
3. Definitions: Defines key terms used throughout the agreement
4. Appointment and Scope: Establishes the appointment of the sales representative and defines the scope of their authority
5. Independent Contractor Status: Clearly establishes the nature of the relationship as independent contractor, not employment
6. Territory and Products: Defines the geographic area and products/services the representative is authorized to sell
7. Commission Structure: Details the commission rates, calculation methods, and payment terms
8. Performance Expectations: Outlines sales targets, reporting requirements, and minimum performance standards
9. Obligations of the Representative: Lists the representative's duties, responsibilities, and conduct requirements
10. Company Support: Describes what support, materials, and training the company will provide
11. Intellectual Property: Protects the company's IP and defines usage rights of trademarks and materials
12. Confidentiality: Protects confidential information of both parties
13. Term and Termination: Specifies the duration of the agreement and termination provisions
14. Post-Termination Obligations: Outlines obligations and restrictions after the agreement ends
15. General Provisions: Includes standard legal provisions like governing law, notices, and amendment procedures
1. Non-Compete Clause: Restricts the representative from competing activities - optional based on market sensitivity and enforceability
2. Insurance Requirements: Specifies required insurance coverage - relevant when representatives handle valuable products or operate vehicles
3. Sub-agents: Provisions for appointing sub-agents - needed if the representative may delegate sales activities
4. Marketing Requirements: Specific marketing obligations and standards - relevant for representatives handling their own marketing
5. Customer Data Protection: Detailed data protection requirements - important when handling significant customer data
6. Equipment and Resources: Provisions regarding company-provided equipment - relevant when specific tools are provided
7. Training Requirements: Mandatory training provisions - important for technical products or regulated industries
8. Minimum Purchase Requirements: For arrangements where representatives must maintain inventory
1. Schedule 1: Territory Description: Detailed description of the geographic territory or market segment
2. Schedule 2: Product List: Comprehensive list of products/services the representative is authorized to sell
3. Schedule 3: Commission Rates: Detailed commission structure, including any tiered rates or special promotions
4. Schedule 4: Sales Targets: Specific sales targets and performance metrics
5. Schedule 5: Reporting Templates: Required formats for sales reports and documentation
6. Schedule 6: Company Policies: Relevant company policies the representative must follow
7. Appendix A: Approved Marketing Materials: List of approved marketing materials and usage guidelines
8. Appendix B: Confidential Information: Specific details of what constitutes confidential information
Authors
Retail
Wholesale
Manufacturing
Technology
Consumer Goods
Professional Services
Medical and Healthcare
Industrial Equipment
Construction Materials
Software and SaaS
Telecommunications
Financial Services
Real Estate
Automotive
Agriculture
Sales
Legal
Commercial
Business Development
Compliance
Operations
Finance
Human Resources
Marketing
Product Management
Sales Director
Commercial Manager
Business Development Manager
Channel Manager
Sales Operations Manager
Legal Counsel
Contracts Manager
Chief Revenue Officer
Regional Sales Manager
Independent Sales Representative
Sales Agent
Territory Manager
Product Manager
Chief Commercial Officer
Compliance Officer
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