A securities brokerage firm may have its own representatives or it may rely on independent representatives for some or all of its sales activities in exchange for a commission. However, the regulations governing this type of contractual relationship are very strict. As such, this service agreement is the legal instrument by which the independent relationship between the brokerage firm and the representative is clearly defined, without creating a permanent or temporary employment relationship.

Keep in mind that the agreement could be construed as an employment agreement, if the relationship between the parties implies that the service provider is subordinate to the client. The nature of the contract is a matter of fact left to the discretion of the court, regardless of how the agreement may define the relationship between the parties.

0.00 INTERPRETATION
0.01 Definitions
0.01.01 Agreement
0.01.02 Applicable Laws
0.01.03 Breach
0.01.04 Change in Control
0.01.05 Confidential Information
0.01.06 Force Majeure
0.01.07 Intellectual Property
0.01.08 Legal Representatives
0.01.09 PARTY
0.01.10 Person
0.01.11 Prime Rate
0.01.12 Regulations
0.01.13 Regulatory Authority
0.01.14 Related Person
0.01.15 Securities
0.01.16 Subsidiary
0.01.17 Tasks
0.01.18 Territory
0.02 Entire Agreement
0.03 Governing Law
0.04 Non-Compliance
0.04.01 Severability
0.04.02 Substitute Provision
0.05 Miscellaneous
0.05.01 Cumulative Rights
0.05.02 No Waiver
0.05.03 Time and Days
a) Time of the Essence
b) Computation of Time
c) Delays
0.05.04 Financial References
0.05.05 Cross-References
0.05.06 Gender and Number
0.05.07 Headings
0.05.08 Presumptions
0.05.09 Knowledge
0.05.10 Approval
0.05.11 Accounting Standards
1.00 PURPOSE
1.01 Mandate to Act as Representative
1.02 Acceptance of Mandate
1.03 Tasks
1.04 Collaboration
1.05 Clients
1.06 Conditions
1.06.01 Required by the CORPORATION
1.06.02 Required by the REPRESENTATIVE
1.06.03 Choice
2.00 CONSIDERATION
2.01 Commission
2.02 Amendment to Commission Rates
3.00 TERMS OF PAYMENT
3.01 Commission
3.01.01 Calculation
a) Net Monthly Commission
b) Deduction
c) Compensation
3.01.02 Payment
3.01.03 End of Agreement
a) Deduction
b) Final Audit
c) Balance in Favour of REPRESENTATIVE
d) Balance in Favour of CORPORATION
3.02 Advances
3.02.01 Amount
3.02.02 Procedure
3.03 Interest
3.04 Loss of Term
4.00 SECURITY
5.00 MUTUAL REPRESENTATIONS AND WARRANTIES
6.00 REPRESENTATIONS AND WARRANTIES OF CORPORATION
6.01 Status
6.02 Authority
6.03 Binding Agreement
6.04 Insurance
7.00 REPRESENTATIONS AND WARRANTIES OF REPRESENTATIVE
7.01 Registration
7.02 Canadian Resident
7.03 Insurance
7.04 Information
7.05 Health
7.06 Independent Legal Advice
8.00 MUTUAL DUTIES AND OBLIGATIONS
9.00 DUTIES AND OBLIGATIONS OF CORPORATION
9.01 Registration
9.02 Client Documentation
9.03 Research
9.04 Regulatory Support
9.05 Representative Manual
9.06 Training and Supervision
10.00 DUTIES AND OBLIGATIONS OF REPRESENTATIVE
10.01 Registration
10.02 Activities
10.03 Compliance
10.04 Material
10.05 REPRESENTATIVE’s Expenses
10.06 Income Taxes and Other Remittances
10.07 Accounts Receivable
10.08 Representatives’ Manual
10.08.01 Compliance
10.08.02 Amendments
10.08.03 Precedence
10.09 Indemnification
10.10 Reserve Fund
10.10.01 Creation
10.10.02 Minimal Amount
10.10.03 Authorized Deduction
10.10.04 Adjustment
10.10.05 Dissolution
10.11 Books of Account
10.12 Insurance
10.12.01 General Liability
10.12.02 Professional Liability
10.12.03 Amount of Coverage
a) General Liability
b) Professional Liability
10.12.04 Insurer
10.12.05 Prior Notice
10.12.06 Co-insured
10.12.07 Insurance Certificates
10.12.08 Notice of Amendment or Cancellation
10.13 Conduct
10.14 Confidential Information
10.14.01 Acknowledgement and Undertaking
10.14.02 Request for Return
10.14.03 Penalty
10.15 Non-Competition
10.15.01 Scope of Undertaking
10.15.02 Breach of Undertaking
a) Automatic Penalty
b) Payment
c) Protective Measures
10.15.03 Additional Remedy
10.16 Non-Solicitation of Clients
10.16.01 Scope of Undertaking
10.16.02 Breach of Undertaking
a) Automatic Penalty
b) Payment
c) Protective Measures
10.17 Non-Solicitation of Personnel
10.17.01 Scope of Undertaking
10.17.02 Breach of Undertaking
a) Automatic Penalty
b) Payment
c) Protective Measures
10.18 Business Opportunities
10.19 Conflict of Interest
10.20 Intellectual Property
10.20.01 Assignment and Waiver
10.20.02 Use
11.00 SPECIAL PROVISIONS
11.01 Assignment Prohibition
11.02 Transfer by CORPORATION
11.02.01 Internal
11.02.02 External
11.03 Relationship Between the PARTIES
11.04 Remedies
11.04.01 Choice
11.04.02 No Limitations
12.00 GENERAL PROVISIONS
12.01 Notice
12.02 Dispute Resolution
12.02.01 Good Faith Negotiations
a) Written Notice
b) Meeting
12.02.02 Mediation
a) Process
b) Mediator
c) Settlement
d) Legal Proceedings [OR Arbitration]
12.02.03 Arbitration
12.03 Choice of Forum
12.04 Counterparts
12.05 Amendment
12.06 No Waiver of Rights
12.07 Electronic Transmission and Signature
12.08 Language
13.00 TERMINATION
13.01 Mutual Consent
13.02 By the CORPORATION
13.03 By the REPRESENTATIVE
13.04 Cessation of Relationship
14.00 EFFECTIVE DATE
15.00 DURATION
15.01 Probation Period
15.02 Initial Term
15.03 Renewal
15.04 Non-Renewal
15.05 Survival
16.00 SCOPE
SCHEDULE 2.01– COMMISSION RATES TABLE
SCHEDULE 10.16.01 A – NON-SOLICITATION - CLIENTS
SCHEDULE 10.16.01 B – NON-SOLICITATION - PRODUCTS AND SERVICES