Commission and brokerage agreement template (US)

Commission and Brokerage Agreement

This Agreement is made on Effective Date between Company Name, a Company Entity Type and State, at Company Address (the "Company"), and Broker Name, a Broker Entity Type and State, at Broker Address (the "Broker").

1. Appointment

The Company appoints the Broker, on a Exclusive or Non-Exclusive basis, to find customers for Products or Services in Territory or Customer Group. The term starts on Start Date and runs until End Date, unless ended sooner under Section 8.

2. Authority

The Broker introduces customers and may quote only the Company's approved prices and terms. The Broker has no authority to sign contracts or bind the Company. The Company may accept or refuse any proposed sale in good faith.

3. Licensing

The Broker confirms that it holds every license that its activity requires. Selling real estate, securities or insurance for a fee generally requires a state or federal license, and this Agreement does not apply to those sales unless the Broker holds that license: License Type and Number or Not Applicable.

4. Commission

The Company will pay a commission of Commission Rate or Amount on Commission Base, such as Net Sale Price Received. The commission is earned when Earning Event, such as Customer Payment Is Received. It excludes taxes, shipping, refunds and credits. Commission paid on an amount later refunded may be deducted from later commissions, as the law allows.

5. Payment and Statements

The Company will pay earned commissions within Commission Payment Days days after the end of each Payment Period, with a statement showing each sale, the amount collected and the calculation. The Broker may inspect the related records once a year on reasonable notice.

6. Expenses and Taxes

The Broker pays its own expenses unless the Company approves them in writing in advance. The Broker is responsible for its own taxes. The Company may report payments on Form 1099 where required.

7. Independent Contractor

The Broker is an independent contractor, and decides its own hours and methods. Nothing here creates employment, partnership or franchise. If the Broker is in fact an employee, state wage law applies. Some states, including California and New York, require a signed writing for commission plans and set rules on when commissions must be paid.

8. Termination

Either party may end this Agreement on Termination Notice Days days' written notice, or at once for material breach not cured within Cure Days days after written notice. The Company will pay commission on sales the Broker secured before the end date, and on sales to customers the Broker introduced that close within Tail Period afterward. Some states protect sales representatives on termination, and the Agreement gives them no less than those laws require.

9. Conduct

The Broker will make no false statement about the products, will follow anti-bribery and consumer protection laws, and will keep the Company's non-public information confidential during and after this Agreement. The Broker will disclose to customers that it is paid by the Company where the law requires.

10. Liability

Each party will indemnify the other against third-party claims caused by its own breach, negligence or misrepresentation. NEITHER PARTY IS LIABLE FOR INDIRECT OR CONSEQUENTIAL DAMAGES, except for fraud or willful misconduct.

General Terms

Governing law. This Agreement is governed by the laws of the State of Governing State, without regard to its conflict of laws rules. Any lawsuit will be brought in the state or federal courts located in Venue County and State.

Entire agreement. This Agreement is the parties' complete agreement on its subject and replaces all earlier discussions. It may be changed only in a writing signed by both parties.

Severability. If a court finds any part of this Agreement unenforceable, that part will be enforced to the extent the law allows, and the rest stays in effect.

Notices. Notices must be in writing and sent to the addresses above by personal delivery, certified mail or a nationally recognized courier.

Counterparts and e-signatures. This Agreement may be signed in counterparts and by electronic signature, which has the same effect as an original.

| Company | Broker |

| --- | --- |

| Signature: Company Signature | Signature: Broker Signature |

| Name: Company Printed Name | Name: Broker Printed Name |

| Date: Company Signing Date | Date: Broker Signing Date |