Contract defining roles and compensation for 3rd party consultant (me)
I am the single member of an LLC providing marketing services for a Mom and Pop company that has developed a construction related tool (which retails for about $2,500).
We have two formal agreement documents (both attached). The first is a verbatim copy of Nolos Agent Letter Agreement and dated 4/16/2009. The second is a subsequent 5/10/2010 Letter of Understanding that refines and clarifies the terms of our agreement.
I want a 3rd relatively bullet-proof agreement to supersede and replace the first two.
Ive been working with the company for more than 3 years now, and grossed a grand total of about $4,600, all in the past few months of 2011. We now seem poised to make some more substantial sales.
My original role was simply to help the owners license, and/or sell their product. In practice, though, I've essentially been running the company. The company absolutely would have failed long ago without my substantial involvement.
I want to make sure our new agreement acknowledges the primary role I've played in the survival and budding success of the company.
The only reason Ive been investing so much time and effort in this project, essentially without immediate compensation, is that I anticipate my efforts will result in substantial sales in the future.
Both owners, however, are in their 60s and not in very good health.
At the very least, I want the new agreement to guarantee that I (my LLC) will continue receiving commission payments on any and all sales made in the future, without expiration.
By the way, since these tools are used in construction work, there is the potential for injury and thus lawsuits. The owners of the company have a $1mm liability policy. I myself formed my LLC to shield me personally through an additional layer from that liability.
For what its worth, my relationship with the Mom and Pop owners is very, very good. However, I dont necessarily trust their children.
Ill also need your input and recommendations on additional points to include in the agreement.