Sales Commission Agreement Template1

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COMMISSION AGREEMENT

This Commission Agreement (the “Agreement”) is entered into


____________________ (the “Effective Date”), by and between ________________________,
with an address of _____________________________ (the “Principal”) and
_________________, with an address of _______________________________, (the “Agent”),
collectively “the Parties.”

BACKGROUND:
Principal wishes to sell the following product(s):
_______________________________________________________________________
Agent agrees to sell the aforementioned product(s) on behalf of Principal for a
commission.

THEREFORE, the Parties agree as follows:


1. Sales Authorization. Principal authorizes Agent to sell the following product(s) on
behalf of Principal
_____________________________________________________________ (the
“Product”). Agent shall identify himself as a duly authorized agent of Principal for the
sale of the Product.

2. Guidelines for Sales. Agent must adhere to the following guidelines when selling the
Product:
a. Product prices will be set by Principal.
b. Principal will provide all promotional materials for Agent’s use to obtain sales.
c. Principal will provide a Sales Contract template to be used by Agent in all
Product sales.

3. Term. This Agreement shall commence upon the Effective Date, as stated above, and
will continue until
____________________________________________________________.

4. Sales Territory. Agent shall sell the Product in the following geographical location
_______________________________________________________________________
(the “Sales Territory”). Agent is not authorized to sell the Product outside the Sales
Territory.

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5. Commission Earnings and Payment Structure. The Parties agree Agent will be
compensated as follows (the “Commission”):
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

6. Principal-Agent Relationship. Principal engages Agent solely for the purpose of selling
the product(s) listed in Section 1. Agent may only enter into contracts and/or agreements
on behalf of Principal as it relates to the sale of said product(s). Agent may not otherwise
commit Principal to any other obligations whatsoever without separate authorization from
Principal.
7. Non-Compete. Agent will not sell a competing product for any competitor in the Sales
Territory during the Term of this Agreement or for ___ years after the termination of this
Agreement.
8. Confidentiality. During the course of this Agreement, it may be necessary for Principal
to share proprietary information, including trade secrets, industry knowledge, and other
confidential information, to Agent in order for Agent to successfully sell the Product.
Agent will not share any of this proprietary information at any time. Agent also will not
use any of this proprietary information for his/her personal benefit at any time. This
section remains in full force and effect even after termination of the Agreement by it’s
natural termination or the early termination by either party.
9. Termination. This Agreement may be terminated at any time by either Party upon
written notice to the other party. Principal will be responsible for payment of all
Commissions earned up to the date of termination.
Upon termination, Contractor shall return all Client content, materials, and all Work
Product to Client at its earliest convenience, but in no event beyond thirty (30) days after
the date of termination.
10. Representations and Warranties. Both Parties represent that they are fully authorized
to enter into this Agreement. The performance and obligations of either Party will not
violate or infringe upon the rights of any third-party or violate any other agreement
between the Parties, individually, and any other person, organization, or business or any
law or governmental regulation.

The Parties agree to the terms and conditions set forth above as demonstrated by their signatures
as follows:

“PRINCIPAL”

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Signed: _____________________________________
By: ________________________________________
Date: _______________________________________

“AGENT”
Signed: _____________________________________
By: ________________________________________
Date: ______________________________________

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