Employment Agreement between an Individual Sales Representative and
A Manufacturer’s Sales Representative
Agreement made, effective as of the _____ day of ____________, 20____, by and
between _______________________________ , a corporation organized and existing under the
laws of the State of ______________________, with its principal office located at
_____________________________________ (street address, city, county, state, zip), referred
to in this Agreement as Company, and ___________________________, of
_________________________________ (street address, city, county, state, zip) , referred to in
this Agreement as Sales Representative.
1. Appointment and Acceptance of Appointment
Company is a manufacturer's sales representative for ___________________________
(manufacturer) in the following described territory: __________________________________
___________________________________________________ (describe territory) , and hires
sales representative to sell products of ________________________ (manufacturer) subject to
terms, conditions, and covenants set forth in this Agreement. Sales Representative accepts such
employment and agrees to comply with the terms and to perform all conditions contained in this
Agreement.
2. Sales Territory
Sales Representative shall have the right to offer for sale and to sell
_____________________________ (specify products) to customers in the following territory:
________________________________________ (describe territory)
3. Solicitation and Taking of Orders
A. Sales Representative shall solicit and take orders for sales of
______________________________ (specify products) , manufactured by
______________________________ (manufacturer) at the list price current at the time
of solicitation.
B. Requests for formal bids and quotations, prices on modifications, quantity prices,
and special equipment or options not shown on price lists will be furnished by
______________________________ (manufacturer) .
C. The list price of all _______________________________ (specify types of
products) shall be __________________________________ (F.O.B., manufacturer = s
plant) . All shipping charges, taxes, export or import duties, packing and boxing, or any
other charges not specifically provided in this Agreement shall be additions to the
effective list price.
4. Acceptance of Orders
A. All acceptances are to be forwarded to Company for acceptance. No order shall
constitute a binding obligation upon Company until it shall be accepted by Company.
Sales Representative shall have no authority to accept any order on behalf of Company or
___________________________ (manufacturer) . Company reserves the right to reject
any order for whatever reason it may deem appropriate without obligation to Sales
Representative for commission.
B. All orders accepted by Company shall be subject to
______________________ (manufacturer's) standard terms and conditions of sale.
________________________ (Manufacturer) shall have the sole authority to change
any terms or conditions.
C. Sales Representative shall make no settlement or collections on any account,
unless so authorized in writing by Company. The authority of Sales Representative shall
be strictly limited to the solicitation and taking of orders.
5. Samples
All samples furnished to Sales Representative under and pursuant to this Agreement shall
remain the property of Company and must be returned upon the termination of this Agreement
or upon request of Company.
6. Commissions
A. Unless specifically agreed otherwise, Company will pay Sales Representative as a
commission, on all uncancelled customers' orders received from Sales Representative's
territory, amounts equal to _____% of all commissions received by Company on orders
credited to Sales Representative's territory.
B. Commissions shall be paid to sales representative on the ________ day of each
month following the month in which payment is received by Company. No commissions
shall be due or payable until Company receives payment from
_____________________________ (manufacturer) .
C. Commissions will be paid on all orders credited to Company after
_______________ (date) .
D. Unless otherwise specified in this Agreement, if any orders are solicited and taken
by Company directly from customers in Sales Representative's territory, Sales
Representative shall be entitled to a commission on the sale in the same manner as if
Sales Representative had solicited and taken the order.
E. If this Agreement is terminated, Sales Representative shall be entitled to the
applicable commissions on all orders accepted by
_________________________________ ( manufacturer) prior to the date of
termination. Such commissions will not be paid until payment is received by company
from ________________________________ (manufacturer).
F. Any change in the amount of commissions payable to Sales Representative under
this Agreement shall not be made without prior knowledge and consent of Sales
Representative.
7. Sales Outside Territory
In the event Company receives an order originating outside the above-specified territory,
and by which shipments of products are made by Company into such territory, Company shall
have the sole right to determine whether, on any such order, any commission shall be due and
payable to Sales Representative and the amount of such commission, if any. The decision of
Company in such cases shall be final and without recourse.
8. Refunds and Returns
A. In the event that any customer does not pay any invoice due on its account to
Company within ______________ (number) months after the due date, Sales
Representative shall, on demand by Company, refund all commissions paid on the unpaid
balance of such account, provided, that if such unpaid balance is, at a later date,
recovered by Company, in whole or in part, the commission so refunded by Sales
Representative shall be repaid to Sales Representative in proportion to the extent of the
balance recovered.
B. The provisions of this section shall survive any termination of this Agreement.
Company shall send Sales Representative copies of all invoices covering sales of
products on which Sales Representative is entitled to a commission.
9. Sales Representative = s Responsibilities
A. Sales representative shall exert his best efforts to promote sales and marketing to
all customers within the above-specified territory.
B. Sales representative shall furnish, as it develops, the following information to
Company:
1. Current activities of Sales Representative by written
________________________ (weekly, monthly or quarterly) reports.
2. Competitive marketing problems, and the current developments in Sales
Representative's territory.
3. Information on poor credit risk customers.
4. All complaints, comments, and critical remarks from customers.
C. Service to Company shall include, but shall not be limited to the following:
1. Regular attendance at the manufacturer's sales meetings, when possible.
2. Communication of the manufacturer's policies to customers.
3. Visits to the manufacturer's plant, as may be necessary.
4. Cooperation with the manufacturer's personnel, both within and without the
defined territory.
5. Investigation, and handling of customers' rejections, service problems and
complaints within the assigned territory.
6. Prompt handling of inquiries, correspondence, and orders forwarded by
Company.
7. Stimulation of customers who are slow in paying.
8. Speedy follow-up of all inquiries received from Company.
10. Expenses
Sales Representative shall pay all of his own expenses in connection with the solicitation
of sales under this Agreement. The only obligation of Company is to pay the applicable
commission specified in this Agreement.
11. Company = s Responsibility to Sales Representative
Company shall furnish the following information and assistance to Sales Representative:
A. Information on all inquiries on manufactured products, originating in defined
territory.
B. Information on orders, invoices, changes, quotations, complaints, cancellations,
and similar data that will be of assistance to Sales Representative.
C. Information on delivery dates, engineering changes, schedule changes, and other
important details that may affect the processing and completion of the order.
D. Information on new products, changes or deletions of products, changes in terms,
customer policy changes, and other information before it is released to public.
E. Information on competition and the techniques employed by such competition.
F. Sales and engineering training of Sales Representative.
G. All price changes in listed and published price lists.
12. Duration of this Agreement
A. This Agreement shall become effective on the date stated above, and shall remain
in effect for a period of _____________ (number) years unless terminated for breach or
as provided in this Agreement.
B. This Agreement may be terminated by either mutual agreement of Sales
Representative and Company or by written notice of either of the parties to the other
party of an intention to terminate the Agreement. Any such written notice shall serve
automatically to terminate this Agreement _____________ (number) days after the date
such notice is sent to the other party via certified or registered mail.
13. Assignment
This Agreement is personal to the parties and may not be assigned by Sales
Representative or Company.
14. Authority of Sales Representative
Sales Representative shall have no right or authority, either express or implied, to assume
or create, on behalf of Company, any obligation or responsibility of whatsoever kind or nature.
15. Liability Insurance
As an express condition precedent to the employment of Sales Representative under this
Agreement, Sales Representative agrees to procure and to maintain a public liability insurance
policy with minimum limits of $ __________________with a public liability insurance carrier
licensed to do business in the State of ________________, and acceptable to company; proof of
Sales Representative's procurement of such insurance shall be made to Company not later than
________ (number) days from the date of execution of this Agreement.
16. Indemnification
Sales Representative agrees to indemnify and hold harmless Company, its agents, and
employees, from and against any and all claims, damages, losses, and expenses, including
reasonable attorneys' fees arising out of performance of Sales Representative's obligations under
this Agreement that are caused in whole or in part by Sales Representative's negligent act or
omission.
17. 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.
18. 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 evidenced in writing signed by each
party or an authorized representative of each party.
19. Governing Law
It is agreed that this Agreement shall be governed by, construed, and enforced in
accordance with the laws of the State of __________________.
20. 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 thereafter 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.
21. Effect of Partial Invalidity
The invalidity of any portion of this Agreement will not and shall not be deemed to affect
the validity of any other provision. In the event that 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 deletion of the invalid
provision.
22. Notices
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.
IN WITNESS WHEREOF, the parties have signed this Agreement as of the day and date
first above mentioned.
________________________________
______________________________
Company
Sales
Representative
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