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Agreement between Service Company and Independent Sales Representative
Agreement made, effective as of the _____day of _______________________________,
20_____, by and between ________________________________________________________
(Name of Service Company), 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 __________________________________________________
(Name of Sales Representative) of _________________________________________________
________________________________________________________________________________________________________________ (street address, city, county, state, zip), referred to in
this Agreement as Sales Representative.
Whereas, Company provides (describe nature of services and products) _____________
__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
primarily in ____________________________________________________ (State), but in
neighboring states as well; and
Whereas, Sales Representative is familiar with the products and services of Company,
and desires to serve as an independent sales representative for Company; and
Whereas, Company, desires to authorize Sales Representative to act as an independent
sales representative for it pursuant to the terms of this agreement;
Now, therefore, for and in consideration of the mutual covenants contained in this
agreement, and other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties agree as follows:
1. Appointment as Independent Sales Representative and Acceptance of Appointment Sales Representative is hereby appointed to be an independent sales representative for
Company in the State of _______________________________________________. Sales
Representative accepts such appointment subject to terms, conditions, and covenants set forth in
this Agreement.
2. Sales Territory
Sales Representative shall have the right to offer for sale (specify products and services)
______________________________________________________________________________ _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ,
hereinafter called Products, to customers anywhere within the State of
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______________________________________________. This territory in not exclusive and
other sales representatives of Company will also sell in said territory,
3. Solicitation and Taking of Orders
A. Sales Representative shall solicit and take orders for sales of Products distributed
by Company 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 Company.
C. The list price of all Products shall be F.O.B., (e.g., City and State)
___________________________________________________________________. 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 orders 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.
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 Company’s standard terms
and conditions of sale. Company 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. Commissions
A. Unless specifically agreed otherwise, Company will pay Sales Representative as a
commission, amounts equal to _________% on all customers' orders received from 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 sales made pursuant
to orders procured by Sales Representative.
C. If this Agreement is terminated, Sales Representative shall be entitled to the
applicable commissions on all orders accepted by Company prior to the date of
termination. Such commissions will not be paid until payment is received by Company
for sales made pursuant to said orders.
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D.No change in the amount of commissions payable to Sales Representative under
this Agreement shall be made without prior knowledge and consent of Sales
Representative.
6. 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 he 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.
8. 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
commissions specified in this Agreement.
9. 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 mail.
10. Assignment
This Agreement is personal to the parties and may not be assigned by Sales
Representative or Company.
11. 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.
12. Liability Insurance (Optional, but may want to include requirement for car insurance)
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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.
13. 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.
14. Noncompetition
On termination of this Agreement, Sales Representative agrees that he will not sell
products or services in competition with Company, to customers of Company that he has
serviced as a Sales Representative within two (2) years of his termination. Sales Representative
agrees that this noncompetition section is necessary to protect Company’s business, and that
Sales Representative’s violation of this paragraph would result in irreparable harm to Company.
If Sales Representative breaches this paragraph, Company shall be entitled to injunctive relief in
addition to any other remedies legally available. This paragraph shall survive termination of this
Agreement.
15. Mandatory Arbitration Notwithstanding the foregoing, and anything herein to the contrary notwithstanding, 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.
16. Status of Sales Representative
The parties intend that Sales Representative be an independent contractor and not an
agent or employee of Company. Company is interested only in the results obtained under this
contract. The manner and means of handling sales shall be under the sole control of Sales
Representative . Sales Representative shall adhere to all laws and ethical standards applicable to
salespersons in the business and industry of Company, and shall perform in a manner consistent
with generally accepted procedures for that profession. None of the benefits provided by
Company to employees, including, but not limited to, worker’s compensation insurance and
unemployment insurance, are available from Company to Sales Representative .
17. Nondisclosure of Information Concerning Business Sales Representative further specifically agrees that he will not at any time, in any
manner, either directly or indirectly, communicate to any person, firm, or corporation any
information of any kind concerning any matters affecting or relating to the confidential business
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matters of Company, including, but not limited to, the names of any of the Company’s
customers, the prices Company obtains or has obtained or at which Company sells or has sold
Products, or any other information of, about, or concerning the confidential business matters of
Company. Sales Representative agrees that Company’s manner of operation, its plans, processes,
or other confidential data of any kind, nature, or description (without regard to whether any or all
of such matters would be deemed confidential, material, or important), are important, material,
and confidential and gravely affect the effective and successful conduct of the business of
Company, and the goodwill of Company, and that any breach of the terms of this paragraph is a
material breach of this Agreement.
18. Payment of Taxes
Sales Representative assumes full responsibility for the payment of all assessments,
payroll taxes, or contributions, whether state or federal. Following the conclusion of the calendar
year, Company will issue to Sales Representative a Form 1099, and Sales Representative will be
individually and solely responsible for the timely payment of any state, federal, social security,
and other self-employment taxes that may be owing on amounts paid to Sales Representative
under this Agreement.
19. 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.
20. 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.
21. Governing Law It is agreed that this Agreement shall be governed by, construed, and enforced in
accordance with the laws of the State of ___________________________________________.
22. 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.
23. 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.
24. Notices
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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.
____________________________________
(Name of Service Company)
___________________________________ By_________________________________
(Name of Sales Representative) ____________________________________
(Name and Office in Corporation)