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Independent Representative Agreement

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Independent Marketing Representative Agreement

This Independent Marketing Representative Agreement, hereinafter called the Agreement, is entered into on this the day of , 20 , specified herein by and between , a corporation organized and existing under the laws of the state of , with its principal office located at , referred to herein as the Company and the undersigned , hereinafter called Marketing Representative.

I. Appointment as Independent Marketing Representative:

A. is hereby appointed by the Company as an Independent Marketing Representative to personally solicit as an independent contractor on behalf of the Company orders for the Company’s Products, from the Company’s customers.

Marketing Representative is an independent contractor and is not an employee, servant, partner or joint venturer of Company. Company shall determine the services to be provided by Marketing Representative, but Marketing Representative shall determine the legal means by which he accomplishes the services in accordance with this Agreement. Company is not responsible for withholding, and shall not withhold or deduct from the commissions FICA or taxes of any kind, unless such withholding becomes legally required. Marketing Representative is not entitled to receive the benefits which employees of Company receive and is not entitled to receive and shall not be entitled to workers compensation, unemployment compensation, medical insurance, life insurance, paid vacations, paid holidays, pension, profit sharing, or Social Security on account of his services to Company. It is further understood that Marketing Representative is free to Agreement for similar services to be performed for other or organizations while under Agreement with Company.

B. Marketing Representative agrees to indemnify, defend and hold the Company harmless from and against any costs, expenses or levies incurred by, or assessed against, the Company as a result of the breach by Marketing Representative of this Agreement.

II. Responsibilities of Independent Marketing Representative: Marketing Representative hereby agrees to:

A. Abide by all policies, guidelines, rules, rate books, regulations and instructions of the Company (as prescribed from time to time) with regard to the sale of the Products to the Customers with which the Marketing Representative deals.

B. Observe and comply with the insurance laws and regulations of the states where Marketing Representative does business or solicits applications for the Products.

C. Clearly explain the terms, conditions and provisions of all contracts and Products to Customers with which Marketing Representative deals and to not make untrue statements, interpretations, misrepresentations, or omit or evade material facts concerning the Products.

D. Use reasonable efforts to obtain a fidelity or surety bond and professional liability (errors and omissions) insurance policy for the protection of Marketing Representative with the Company named as an additional insured on any such bond or policy, if permitted by applicable law.

E. Indemnify, defend and hold the Company harmless from and against any costs, fees and expenses that the Company may incur for any administrative or legal action involving Marketing Representative to which the Company may be made a party or otherwise incur a cost or expense and the Company may, at its discretion, employ its own counsel in defense of such action.

F. Keep in strict secrecy and confidence any and all information to which he has access and which has not been publicly disclosed and is not a matter of common knowledge in the fields of work of the Company. Marketing Representative agrees that both during and after the term of this Agreement he will not, without the prior written consent of the Company, disclose any such confidential information to any third person, partnership, joint venture, company, corporation or other organization.

III. Prohibitions. Marketing Representative agrees not to:

A. Make, alter or discharge any contract or Products of the Company;

B. Waive any forfeiture; quote rates other than as quoted by the Company or the Customers;

C. Provide outdated materials or rates to the Customers;

D. Extend time for payments in cash;

E. Withhold any monies or other property of the Customers or the Company or incur any indebtedness or liability on behalf of the Company unless specifically authorized in writing by the Company;

F. For a period of years after termination of this Agreement, directly or indirectly solicit orders of any product similar to Products whether alone, as a partner, or as an officer, director, employee or shareholder of any corporation, or as a trustee, fiduciary or other representative of any other entity.

III. Termination of Agreement. Company may terminate this Agreement immediately for Cause. For purposes of this Agreement, “Cause” means:

A. Any act or omission of the Marketing Representative constituting misconduct or negligence, fraud, misappropriation, embezzlement, conflict of interest or competitive business activities, including but not limited to any arrest on criminal charges;

B. Any chemical dependence which materially adversely affects the performance of his duties and responsibilities to the Company;

C. Breach of the fiduciary obligations of Marketing Representative to the Company in a material respect;

D. Repeated failure of Marketing Representative to perform his duties after written notice of the alleged failure and a reasonable opportunity to cure;

E. Material breach of the Marketing Representative of Company's policies or any material provision of this Agreement;

F. Gross misconduct of Marketing Representative resulting in substantial loss to the Company or damage to the reputation of the Company; or

IV. Termination for Death or Disability.

A. Termination for Death. In the event of the death of Marketing Representative this Agreement shall terminate and be of no further force or effect.

B. Termination for Disability. If, by reason of a physical or mental illness continuing for a period of consecutive calendar days, or for shorter periods aggregating days during any 12-month period, Marketing Representative has been substantially unable to render services of the character contemplated by this Agreement, then Company may, on days prior written notice to Marketing Representative, terminate this Agreement.

C. Accrued Commission. In the event of termination of this Agreement for death or disability, Marketing Representative or his estate shall be entitled to all commissions accrued but unpaid as of the date of termination.

V. Responsibilities of the Company. The Company agrees to provide Marketing Representative with compliance support and assistance, seminars and training and other general services in accordance with the policies established by the Company from time to time applicable to the training and support of marketing representatives.

VI. Commissions on Sales.

A. As full compensation for all sales made by Marketing Representative under this Agreement, and any necessary expenditures incurred in the performance of this Agreement made by Marketing Representative, Company shall pay Marketing Representative commissions, subject to the terms and conditions of the Schedule attached hereto as Schedule A.

B. The above commissions shall be payable only with respect to Products actually shipped or delivered to a purchaser under orders obtained by Marketing Representative pursuant to this Agreement.

VII. Disputes on Commissions. Company shall have the right to determine, in any dispute arising between Marketing Representative and any sales agent of Company, the right to commission on any sale, and both Marketing Representative and sales agent shall abide by and be bound by the decision of the Company.

VIII. Contents of Orders. All orders for Company Products shall be taken on printed forms furnished by the Company, and all such orders shall be sent to Company immediately after being signed by purchasers. The orders shall contain all conditions and agreements of every nature whatsoever between the parties to the sale, it being agreed that Company shall not be responsible for promises or conditions not specified on the orders. The Products of Company shall not be sold for more or less than the list price established by Company.

IX. Acceptance of Orders by Company. Orders taken by Marketing Representative shall not be binding until accepted by Company. Company reserves the right to reject any order when, in the judgment of Company, the Products ordered may not be suitable to the business of the Customer.

X. Remittals by Agent. Agent agrees to remit commissions monthly to Marketing Representative by check or direct deposit to a bank account of Marketing Representative.

XI. Expenses of Marketing Representative. All expenses for traveling, entertainment, office, clerical, office and equipment maintenance, and general selling expenses that may be incurred by agent in connection with this agreement will be borne wholly by agent. In no case shall principal be responsible or liable for such expenses.

XII. Accounting on Termination.

A. Marketing Representative authorizes Company, on termination of this Agreement to pay any outstanding indebtedness, including amounts due Marketing Representative incurred in the marketing of the Products of Company and to charge the amount to Marketing Representative’s commission account.

B. Marketing Representative’s agrees that officers or authorized representatives of Company shall have, on demand, access to and the right to examine and make copies of all books of accounts, vouchers and papers of Marketing Representative.

XIII. Severability. The invalidity of any portion of this Agreement will not and shall not be deemed to affect the validity of any other provision. If any provision of this Agreement is held to be invalid, the parties agree that the remaining provisions shall be deemed to be in full force and effect as if they had been executed by both parties subsequent to the expungement of the invalid provision.

XIV. No Waiver. The failure of either party to this Agreement to insist upon the performance of any of the terms and conditions of this Agreement, or the waiver of any breach of any of the terms and conditions of this Agreement, shall not be construed as subsequently waiving any such terms and conditions, but the same shall continue and remain in full force and effect as if no such forbearance or waiver had occurred.

XV. Governing Law. This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of .

XVI. Notices. Unless provided herein to the contrary, any notice provided for or concerning this Agreement shall be in writing and shall be deemed sufficiently given when sent by certified or registered mail if sent to the respective address of each party as set forth at the beginning of this Agreement.

XVII. Attorney’s Fees. In the event that any lawsuit is filed in relation to this Agreement, the unsuccessful party in the action shall pay to the successful party, in addition to all the sums that either party may be called on to pay, a reasonable sum for the successful party's attorney fees.

XVIII. Mandatory Arbitration. Notwithstanding the foregoing, and anything herein to the contrary, any dispute under this Agreement shall be required to be resolved by binding arbitration of the parties hereto. If the parties cannot agree on an arbitrator, each party shall select one arbitrator and both arbitrators shall then select a third. The third arbitrator so selected shall arbitrate said dispute. The arbitration shall be governed by the rules of the American Arbitration Association then in force and effect.

XIX. Entire Agreement. This Agreement shall constitute the entire agreement between the parties and any prior understanding or representation of any kind preceding the date of this Agreement shall not be binding upon either party except to the extent incorporated in this Agreement.

XX. Modification of Agreement. Any modification of this Agreement or additional obligation assumed by either party in connection with this Agreement shall be binding only if placed in writing and signed by each party or an authorized representative of each party.

XXI. Assignment of Rights. The rights of each party under this Agreement are personal to that party and may not be assigned or transferred to any other person, firm, corporation, or other entity without the prior, express, and written consent of the other party.

XXII. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which together shall constitute but one and the same instrument.

XXIII. Compliance with Laws. In performing under this Agreement, all applicable governmental laws, regulations, orders, and other rules of duly-constituted authority will be followed and complied with in all respects by both parties.

WITNESS our signatures as of the day and date first above stated.

(Name of Company)

By:

(Printed Name of Marketing Representative)

(Signature of Marketing Representative)

By:

(Printed Name & Office in Corporation)

(Signature of Officer)

Enter text✕

What an Independent Representative Agreement Is

An Independent Representative Agreement is a contract that defines the relationship between a principal (manufacturer, distributor, or service provider) and an independent representative who markets, solicits, or sells products or services on the principal’s behalf. The agreement typically sets out the representative’s authority, territory, compensation (commissions or fees), reporting obligations, term and termination rights, confidentiality, intellectual property ownership, noncompetition or exclusivity provisions, and indemnification. It clarifies whether the representative is an independent contractor for tax and labor purposes and allocates risk, recordkeeping, and compliance responsibilities between the parties.

Why a Clear Agreement Matters

A well-drafted Independent Representative Agreement reduces disputes about authority, commissions, and territory, protects confidential information and IP, and helps ensure correct tax treatment for independent contractors. Clear terms also make enforcement and termination predictable while helping parties demonstrate compliance with U.S. employment and tax rules such as IRS guidance on independent contractor classification.

Why a Clear Agreement Matters

Who Typically Uses This Agreement

The Independent Representative Agreement is used by companies engaging outside sales agents and by individuals or firms acting as sales representatives or brokers.

  • Manufacturers and distributors who appoint outside agents to expand sales in new territories or channels.
  • Independent sales representatives, brokers, and referral agents contracted to solicit orders or leads on commission.
  • Legal and HR teams who review classification, compensation, and compliance with tax and employment laws.

Use this agreement when you need a written record of delegated authority, payment terms, confidentiality safeguards, and the process for terminating or renewing the relationship.

Key Signatory Roles

Authorized Representative

An individual with contractual authority to bind a party. Typically a corporate officer or designated agent who can execute and amend the agreement on behalf of the company; their authority should be documented in corporate resolutions or power-of-attorney where appropriate.

Independent Representative

A named person or business entity that performs sales activities under the agreement. The representative’s classification as an independent contractor should be consistent with IRS and state rules to reduce misclassification risk and tax exposure.

Core Clauses to Include

A professional Independent Representative Agreement contains specific clauses that allocate responsibilities, define compensation mechanics, and manage risk. The six items below describe essential provisions to include and how they operate in practice.

Appointment

Specify the scope of authority, whether the appointment is exclusive or nonexclusive, precise territory or accounts covered, and any limitations on contracting or price-setting authority.

Term & Termination

State the initial term, renewal mechanics, and termination rights including for cause, without cause, and for regulatory or compliance breaches; include notice periods and post-termination obligations.

Territory & Accounts

Define geographic boundaries, customer segments, and any carve-outs; include rules for leads, protected accounts, and handling of pre-existing customers to reduce disputes.

Compensation

Detail commission rates, triggering events for payment, payment timing, recoupment on returns, currency and tax withholding responsibilities, and required invoices or reports.

Confidentiality & IP

Protect trade secrets, marketing materials, and IP; specify permitted use of marks, required security controls, and the return or destruction of confidential materials on termination.

Indemnity & Liability

Allocate responsibility for third-party claims, define insurance requirements, limit liability where permitted by law, and address defense and settlement procedures.

Step-by-Step: How to Complete the Agreement

Follow these practical steps to prepare, agree, and finalize an Independent Representative Agreement with clarity and auditability.

  • 01
    Prepare Draft: Fill core terms and attach exhibits.
  • 02
    Review Parties: Confirm legal names and signatory authority.
  • 03
    Set Authentication: Select eSignature method and identity checks.
  • 04
    Execute: Sign, record audit trail, and distribute copies.

Typical Digital Workflow Settings

Configure the signing workflow to match the contract’s approval path and required authentication level.

Field Configuration
Authentication Email link with optional SMS code
Bulk Send Enabled for mass commission agreements
Notarization RON available where permitted
Audit Trail Capture IP, timestamp, and events

How Electronic Execution Usually Works

Electronic execution follows a standard sequence that preserves intent, attribution, and a reproducible record consistent with ESIGN and UETA.

  • Upload Document: Sender uploads final agreement
  • Place Fields: Add signature, date, and initials
  • Add Signers: Assign roles and authentication
  • Complete Signing: Signers execute and receive copies

Platform and Integration Considerations

Choose a platform that supports required authentication, RON if needed, secure storage, and integrations with your CRM or ERP.

  • Integrations: Salesforce, NetSuite, Microsoft 365
  • Document Formats: PDF, DOCX, HTML supported
  • Authentication Options: Email, SMS code, KBA

Ensure the platform enables audit trails, exportable records, and a compliance posture that matches industry needs (HIPAA, 21 CFR Part 11, SOC 2).

Typical Deadlines and Response Times

Be mindful of contract timelines for notice, commission payment cycles, and tax reporting that affect both parties' obligations.

Commission Payment Timing:

Pay within 30 days after invoice or receipt of payment.

Termination Notice:

Provide 30–90 days notice per agreement clause.

1099 Reporting:

Independent rep income reported on Form 1099-NEC by Jan 31.

Record Retention:

Keep sales and commission records at least 3 years.

Dispute Window:

Specify a limited window for claim submission (e.g., 60 days).

Key Contract Milestones

Track milestones from negotiation to post-termination to maintain compliance and protect commissions and confidential information.

01

Negotiation

Agree terms and exhibits before signature.

02

Execution

Signatures applied and copies distributed.

03

Onboarding

Provide training, materials, and reporting templates.

04

Post-Termination

Calculate final payments and return materials.

Common Preparation Mistakes

  • Vague territory language that omits customer lists or account boundaries, creating disputes about who may service which accounts.
  • Commission formulas expressed unclearly or without examples, causing differing interpretations on payable amounts and recoupment on returns.
  • Failing to confirm signatory authority, which can delay enforcement and require ratification or corrective execution.
  • Neglecting tax and classification language, which can lead to audit risk, backup withholding, or misclassification penalties.

Risks of an Incorrect Agreement

Tax Exposure: Incorrect 1099 treatment
Commission Disputes: Unclear payment triggers
Confidentiality Breach: Insufficient protections
IP Loss: Unassigned work product
Regulatory Noncompliance: HIPAA or export issues
Termination Claims: Wrongful termination suits

Security and Compliance Controls to Specify

Encryption: TLS 1.2/1.3; AES-256 at rest
Audit Trail: IP, timestamps, event log
HIPAA: BAA available when required
ESIGN/UETA: Retention and consent support
SOC 2: Access and change controls
21 CFR Part 11: Available for regulated workflows

eSignature Pricing and Feature Comparison

Compare common eSignature pricing and capabilities for executing Independent Representative Agreements; signNow is listed first for reference.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial Yes, 7-day free trial No No Yes, limited Yes, limited
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No envelope cap 100 envelopes/user/year Varies by plan Varies by plan Varies by plan

Frequently Asked Questions

Answers to common questions about validity, notarization, revocation, tax reporting, and secure storage for Independent Representative Agreements.


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