Employment of Consultant or Consulting Agreement with Clauses as to
Confidentiality, Covenants not to Compete and Ownership of Inventions
Agreement made on the _____________ (date), between __________________
(Name of Client) , a corporation organized and existing under the laws of the state of
______________, with its principal office located at ____________________________
_______________________________________________ (street address, city,
state, zip code) , referred to herein as Client, and ________________________ (Name
of Consultant) , a corporation organized and existing under the laws of the state of
______________, with its principal office located at ____________________________
______________________________________________ (street address, city, state,
zip code) , referred to herein as Consultant.
Whereas, Client wishes to contract with Consultant for the services of Consultant
in the field of (description of field) _________________________________________
________________________________________________________________; and
Whereas, Consultant is willing and qualified to perform such services.
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. Services
It is understood that services provided by Consultant pursuant to this Agreement
shall be so provided on a day-to-day, as-needed basis. Client shall have sole discretion
to determine the need for continued providing of such services. Consultant shall not
perform services the cost of which would exceed the dollar authorization set forth in
Client's written authorization. Client shall have sole discretion to establish the minimum
qualifications necessary for the performance of any service to be rendered by
Consultant under and pursuant to this Agreement. Further, if at any time and at its sole
discretion, Client determines that the services performed under and pursuant to this
Agreement by any of Consultant's employees are not satisfactory, it will so notify
Consultant in writing and Consultant shall immediately withdraw such individual and, at
Client's option, furnish an individual who meets the qualifications required. Consultant
agrees to perform such services as may be requested in writing by Client, including, but
not limited to, (description of services) _____________________________________
______________________________________________________________________
_____________________________________________________________________.
2. Compensation Client shall compensate Consultant as follows:
A. $__________ per hour for the effort expended by Consultant pursuant to
this Agreement.
B. Actual expenses incurred by Consultant directly related to Consultant's
performance under and pursuant to this Agreement.
C. Payment under this Section by Client shall be net ______ (number) days
from the date of receipt by Client of Consultant's invoice setting forth the total
effort expended and actual expenses incurred and paid for by Consultant.
Consultant's invoice for expenses shall be supported by appropriate receipts.
3. Consultant’s Employees If employees of Consultant also perform services for Client under and pursuant to
this Agreement, they shall be bound by the provisions of this Agreement and Consultant
shall, at the request of Client, furnish to Client satisfactory evidence to that effect and
that such employees are in fact employees of Consultant only and that all such
employees are covered by workers compensation insurance and that taxes required to
be withheld or paid on behalf of such employees have been paid or provided for by
Consultant.
4. Consultant is an Independent Contractor Consultant is an Independent Contractor and is not an employee, servant,
partner or joint venturer of Client. Client shall determine the services to be provided by
Consultant, but Consultant shall determine the legal means by which it accomplishes
the services in accordance with this Contract. Client 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. Consultant is not entitled to receive
the benefits which employees of Client 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 Client. It is further understood that Consultant is free to
contract for similar services to be performed for other (type of entity) ______________
___________________ or organizations while under Contract with Client.
5. Confidentiality Consultant agrees that:
A. All knowledge and information that Consultant may receive from Client or
from its employees or other Consultants of Client, or by virtue of the performance
of services under and pursuant to this Agreement, relating to inventions,
products, processes, machinery, apparatus, prices, discounts, costs, business
affairs, future plans, or technical data that belong to Client or to those with whom
Client has contracted regarding such information; and
B. All information provided by Consultant to Client in reports of work done,
together with any other information acquired by or as direct result of employment
as a Consultant by Client and during the term of such employment, shall for all
time and for all purposes be regarded by Consultant as strictly confidential and
held by Consultant in confidence, and solely for Client's benefit and use, and
shall not be used by Consultant or directly or indirectly disclosed by Consultant to
any person whatsoever except to Client or with Client's prior written permission.
6. Inventions and Works that can be Copyrighted or Patented Consultant further agrees on its behalf and on behalf of its employees,
representatives, vendors, subcontractors, and agents, that Consultant will promptly
communicate and disclose to Client or to its nominees, all computer programs,
documentation, software, and other copyrightable works (the Copyrightable Works), and
all discoveries, improvements, and inventions (the Inventions) conceived, reduced to
practice, or made by Consultant or its agents, whether solely or jointly with others,
during the term of this Agreement:
A. Along the lines of Client's products or applicable to or useful with such
products;
B. Relating to Client's manufacturing or other processes or procedures or to
machinery or apparatus useful in connection with such processes or procedures;
C. Relating to Client's investigations or to the nature of its business at the
time of the invention; or
D. Resulting from or related to any work Consultant or its agents may do on
behalf of Client or at its request; shall be and remain entirely the property of
Client.
7. Intellectual Property Belongs to Client A. All such inventions and copyrightable works that Consultant is obligated to
disclose shall be and remain entirely the property of Client. It is agreed that all
copyrightable works are works made for hire and shall be the exclusive property
of Client. Further, Consultant agrees to assign and does assign to Client any
rights it may have in such copyrightable works.
B. Consultant and its agents will assist Client and its nominees, successors,
or assigns, on request, during and following the term of this Agreement, at
Client's expense, to obtain and maintain for its own benefit, patents and/or
copyright registrations for any such inventions and or copyrightable works in any
and all countries. Such assistance shall include, but not be limited to, executing
and delivering specific assignments of any such invention or copyrightable work
and all domestic and foreign patent rights and copyrights in such invention or
work, and all other papers and documents that relate to securing and maintaining
such rights, and performing all other lawful acts, as may be deemed necessary or
advisable by Client or its nominees, successors, or assigns.
8. Consultant Representation Consultant represents and warrants that Consultant and Consultant's employees
have the right to perform the services required under and pursuant to this Agreement
without violation of obligations to others, and that Consultant and its employees have
the right to disclose to Client all information transmitted to Client in the performance of
services under and pursuant to this Agreement, and Consultant agrees that any
information submitted to Client, whether patentable or not, may be used fully and freely
by Client.
9. Duration and TerminationThis Agreement shall become effective on the date stated above and shall
continue for a period of _______ (number) days. In addition to terminating at the end of
such period, this Agreement may be terminated pursuant to the following:
A. Immediately on the death or incapacity of any person employed by
Consultant who, in the sole opinion of Client, was essential for the successful
performance of Consultant's obligations under and pursuant to this Agreement;
B. By either party, with or without cause at any time, on _______ (number)
days' prior written notice; or
C. By Client, at any time, on _______ (number) days' prior written notice, if
Consultant assigns this Agreement, or any right or obligation under this
Agreement, without Client's prior written consent; or if there is a change in the
control or management of Consultant that is unacceptable to Client; or if
Consultant ceases to function as a going concern, or to conduct its operations in
the normal course of business.
10. Indemnity and Insurance A. Consultant agrees to defend at its own cost and expense any claim or
action against Client for actual or alleged infringement of any United States
patent, copyright or other property right (including, but not limited to,
misappropriation of trade secrets) based on any service furnished to Client by
Consultant pursuant to the terms of this Agreement. Consultant agrees, should
Client's use of any service furnished to Client by Consultant be enjoined by any
court, to promptly obtain, at no expense to Client, the right to continue to use the
items so enjoined or, at no expense to Client, and provide Client promptly with
substitute items to the enjoined products. The limit to Consultant's liability for all
costs, expenses, judgments, fees and settlements under this provision shall be
the amount Client has paid under this Agreement.
B. Consultant shall procure and maintain for itself and its employees all
insurance coverages as required by Federal or State law, including workers'
compensation insurance.
11. Non-Solicitation Unless otherwise mutually agreed to by the parties in writing, the parties agree
that they will not hire or solicit the employment of any personnel of the other party
during the term of this Agreement and for a period of _____ months after the
termination of this Agreement.
12. Services after Termination and Covenant Not to CompeteContractor agrees that, for period of (e.g., two) _______ years following the
termination of this Agreement, Contractor will not directly or indirectly:
A. Perform any similar services for any person or firm engaged in competition
with the business of Client in (territory covered) ________________________
_______________________________________________________________ .
B. If any restriction set forth in this Section 12 is found by any court of
competent jurisdiction to be unenforceable because it extends for too long a
period of time or over too great a range of activities or in too broad a geographic
area, it shall be interpreted to extend only over the maximum period of time,
range of activities or geographic area as to which it may be enforceable.
C. The restrictions contained in this Section 12 are necessary for the
protection of the business and goodwill of the Client and are considered by
Consultant to be reasonable for such purpose. Consultant agrees that any
breach of this Section 12 will cause Client substantial and irrevocable damage
and therefore, in the event of any such breach, in addition to such other remedies
which may be available, Client shall have the right to seek specific performance
and injunctive relief.
13. Loss or Damage Consultant shall be responsible for and shall reimburse Client for all loss or
damage to Client's property, property of third parties, or personal injury caused by the
acts or omissions of Consultant, its agents, or employees during the term of this
Agreement.
14. Use of Client’s Name Except as specifically authorized in writing by us, Consultant will not use Client's
name, products, or commercials, or portions of them, in your advertising or promotions,
nor allow anyone not specifically authorized by Client to view or possess any such
commercials or elements or portions.
15. Surviving Obligations The obligations of Consultant as set forth in Sections 5, 6, 7, 11, 12 and 14,
above, shall survive any expiration or termination of this Agreement. On termination of
this Agreement, Consultant will return to Client all written information, drawings, models,
and other materials or files supplied to Consultant or created by Consultant at the
expense of Client.
16. 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.
17. No WaiverThe 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.
18. Governing Law This Agreement shall be governed by, construed, and enforced in accordance
with the laws of the State of ______________.
19. 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.
20. 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.
21. Mandatory Arbitration 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.
22. 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.
23. 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.
24. Assignment of RightsThe 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.
25. 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.
26. 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.
27. In this Agreement, any reference to a party includes that party's heirs, executors,
administrators, successors and assigns, singular includes plural and masculine includes
feminine.
WITNESS our signatures as of the day and date first above stated.
___________________________ _________________________
(Name of Consultant) (Name of Client)
By:____________________________ By:_______________________________
___________________________ _________________________
(Printed Name & Office in Corporation) (Printed Name & Office in Corporation)
___________________________ _________________________
(Signature of Officer) (Signature of Officer)