Employment of Sales Representative to Sell Wholesale Beauty
Supplies in E xclusive Territory
Employment Agreement made on the __________________ (date) , between ________
___________________________________ (Name of Sales Representative) of ___________
_____________________________________________________________ (street address,
city, county, state, zip code) , referred to herein as Sales Representative , and ____________
______________________ (Name of 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 code) , referred to herein as Company .
1. Employment of Sales Representative
A. Company agrees to employ Sales Representative and Sales Representative
agrees to work for Company as Sales Representative , effective as of _________________
(date) , and continuing until employment is terminated as provided below in this Agreement .
B. Sales Representative shall represent Company exclusively, working in
accordance with policies, procedures and directions from Company .
C. Sales Representative shall devote his entire working time and best efforts to
selling Company 's merchandise and services and shall conduct himself so as to reflect credit
upon the Company .
2. Territory
The territory as used in this Agreement , shall consist of (description of territory)
____________________________________________________________________________
____________________________________________________________________________.
A. Sales Representative shall solicit within the territory accounts and prospects not
assigned to other representatives or reserved by Company . Company reserves the right to
employ other representatives to solicit in the territory. In case of any bona fide dispute between
representatives in connection with any sale, commission, or the division of sale or commission,
the decision of Company in such matter shall be final.
B. Upon an authorized sale by Sales Representative accepted by Company , or
upon a written assignment by Company , an account shall be deemed exclusively assigned to
Sales Representative . Only Sales Representative can make an authorized sale to an account
than has been so exclusively assigned to Sales Representative . Any assignment to Sales
Representative of an account not located in the territory is subject to revocation by Company in
its discretion.
C. If Sales Representative does not make a sale to an assigned account for _____
(number) months, the exclusive privilege that Sales Representative had in connection with such
account shall terminate.
D. If Sales Representative for _____ ( number) days or more should fail to call on
assigned accounts because of sickness or accident, Company may send a temporary sales
representative to call on such accounts. The commission on sales to accounts on which the
temporary sales representative has called may be awarded to the temporary sales
representative.
3. Commissions and Charges
A. Sales Representative shall be furnished a price book entitled _______________
(name of price book) , setting forth the various articles of merchandise offered by Company ,
together with the wholesale selling prices of the merchandise he is to sell.
B. Sales Representative shall receive from Company a commission of _____% of
the wholesale price for all merchandise sold by him. Said commission shall be paid on or before
(e.g., 15 th
) _____ day of the month following the sale. The amount allowed as reimbursement
for on the job expenses incurred shall be $__________ per week, which amount may be
changed by Company from time to time. Sales Representative shall not be required to render to
Company any expense reports. Sales Representative shall be responsible for maintaining
adequate daily records of expenses actually incurred for use in justifying income tax deductions.
C. Sales Representative shall not be entitled to a commission for a sale until the
merchandise is shipped and an invoice mailed to the customer, which invoice is then due and
payable. Where Sales Representative gives a future dating approved by Company , commission
will be credited to Sales Representative on the date of the future dating.
D. Company will, from time to time, establish the minimum order that it desires
Sales Representative to submit. If an order below the specified minimum is submitted by Sales
Representative , and is accepted by Company , shipment shall be for Sales Representative 's
accommodation, and no commission shall be paid on account of such order.
4. Orders and Accounts
A. All orders are taken subject to acceptance by Company .
B. Orders shall be signed by the customer or a duly-authorized agent of the
customer. If the shipment of goods on an unsigned or improperly authorized order submitted by
Sales Representative results in any loss due to the lack of proper authorization, Sales
Representative shall be charged with the full loss said commission, plus transportation charges.
C. Sales Representative may not authorize returns and adjustments unless first
approved by Company . If any merchandise is returned, Sales Representative will be charged
back with the commission and will bear transportation and storage charges paid by Company in
connection with such return. If the return is due to the fault of Company and no replacement
shipment is made, Sales Representative will be re-credited with amounts charged against him.
D. If Sales Representative sells any merchandise for which the customer has not
paid in full within ______ (number) days from date of shipment, regardless of dating given, or
should Company consider an account of doubtful collectability, Sales Representative may be
charged back with the commission for the sale of such merchandise. If Sales Representative
sends in an order for a customer who owes Company a past-due amount, Company may ship
such order and withhold commission until all past-due amounts have been paid. If Sales
Representative sends in an order, the payment of which Company deems doubtful, Company
may ship such order and withhold commission until such order has been paid in full.
F. ______% of the expenses incurred by Company in collecting any account
resulting from shipment of an order submitted by Sales Representative shall be charged to
Sales Representative , provided the amount so charged may not exceed the commission on
such order.
5. Accounts, Overdrafts, Emergency Fund, and Salary in Lieu of Commission
A. A statement of Sales Representative 's account will be mailed to Sales
Representative periodically. Sales Representative recognizes that an error may occur in
Company 's commission computation or accounting and that any such error can be determined
by his review of the statements, accompanying vouchers, and Sales Representative 's own
records. If any error occurs, Sales Representative shall promptly notify Company in writing, and
Company shall have reasonable opportunity to invest and correct such error. The statement
made by Company and accepted without objection by Sales Representative shall be deemed an
account stated between the parties as of the date of such statement. It shall be binding and
conclusive between the parties _____ ( number) days after such date and subsequently shall
not be subject to further accounting or review.
B. While Company does not agree to allow any overdraft, Sales Representative is
permitted to draw $_______________ as (e.g., weekly or monthly) ________________ pay
against commission and allowance credits. If Sales Representative 's commissions and
allowance credits do not entitle him to such (e.g., weekly or monthly) , ______________
Company reserves the right to reduce or discontinue it.
C. For an initial period, not to exceed ______ (number) months from the date of
original employment, Company may, in lieu of the commission compensation set forth in this
Agreement , pay Sales Representative a (e.g., weekly or monthly) _________________ salary
plus a portion of commissions depending upon Sales Representative 's performance as
measured by Company 's program for new representatives then in effect. This program may be
altered from time to time. At the expiration of such initial period or at the expiration of any
consecutive ______ (number) -month period during which commission compensation, as
provided above, would exceed the amount paid as provided in this Paragraph, such salary
arrangement will terminate and subsequently Sales Representative 's compensation shall be in
accordance with the provisions of the other paragraphs of this section.
6. Rebates
Sales Representative will not offer or give any rebate or part of commission earned by
Sales Representative to either a purchaser or buyer representing the purchaser, in any sale
made or proposed to be made, of the products of Company .
7. Term
The term of this Agreement shall be for one year beginning ________________
(commencement date) , and ending __________________ (termination date) ; but
subsequently shall automatically continue from month to month unless either party gives written
notice to the other party that it shall expire on that date. However, either party may terminate
this Agreement at any time by written notice to the other party.
8. Termination
A. If either party gives notice of the intent to terminate this Agreement , Company , at
its election, may immediately terminate this Agreement , but Company shall credit Sales
Representative 's commission account with compensation for the above-stated notice period
based on Sales Representative 's net average weekly commissions during the (number) -week
period immediately preceding such notice of termination, or during the entire period of
employment if such employment has been for less than _____ (number) weeks.
B. Upon the termination of Sales Representative 's employment, Sales
Representative shall immediately return to Company at its office located at the address set forth
above, personally or by motor freight collect, all of Company 's merchandise, novelties, literature,
route books, bulletin sets, labels, samples, consignment equipment, and supplies in his
possession for use as a Sales Representative of Company , together with all customer records
and other records relating to Company 's business and any and all other property belonging to
Company . Until all of the above listed items are returned by Sales Representative , Company
may withhold any sums due to Sales Representative under the provisions of this Agreement .
9. Covenants Concerning Competition
A. Company is engaged in the business of wholesale beauty supply sales. Its
products include, but are not limited to: (describe products) ____________________________
___________________________________________________________________________ .
B. Company will undertake to train and to continue to train Sales Representative
and to impart to Sales Representative confidential information and knowledge about Company 's
business policies, accounts, procedures, and methods. Company has established a valuable
and extensive trade in its products and services, which business has been developed at a
considerable expense to Company . The nature of the business is such that the relation of its
customers with Company must be maintained through the close personal contact of its
representatives.
C. Sales Representative desires to enter into or continue in the employ of Company ,
and by virtue of such employment of Company , Sales Representative will become familiar with
and possessed of the manner, methods, secrets, and confidential information pertaining to such
business, and with names and lists of its customers and clientele. During his further
employment, Sales Representative will continue to receive additional confidential information of
the same kind. Through his representation of Company , Sales Representative will become
personally acquainted with customers, their business requirements, and the amount paid by
them for Company 's products and services.
D. In consideration of the employment or continued employment of Sales
Representative as provided in this Agreement , the training of Sales Representative by
Company , and the disclosure by Company to Sales Representative of the knowledge and
information described above, Company exacts and Sales Representative makes the covenants
set forth below. Sales Representative understands and acknowledges that such covenants are
required for the fair and reasonable protection of the business of Company carried on in the
area to which the covenants are applicable and that without the limited restrictions on Sales
Representative 's activities imposed by the covenants the business of the Company would suffer
irreparable and immeasurable damage. The covenants on the part of Sales Representative
shall be construed as an Agreement independent of any other provision of this Agreement , and
the existence of any claim or course of action whether predicated on this Agreement or
otherwise, shall not constitute a defense to the enforcement by Company of such covenants.
E. Sales Representative agrees that during the term of this Agreement and for a
period of ______ (number) years immediately following the termination of his employment with
Company , he will not, within the territory defined above, directly or indirectly, for himself or on
behalf of others, as an individual on his own account, or as an employee, agent, or Sales
Representative for any person, partnership, firm, corporation, or other entity:
1. Solicit orders for beauty supplies for distribution to institutional, industrial,
commercial, and governmental consumers.
2. Contact, for the purpose of diverting any of the customers or accounts of
the business of the Company as described in Paragraph A of this section.
3. Own, manage, control, operate, or participate in the ownership,
management, or control, or engage as a Sales Representative or sales executive, of any
business that engages in any phase of the business described in Paragraph A of this
Section.
F. Sales Representative agrees that during the term of this Agreement and for
______ (number) years afterward, he will not use, give or divulge to any person anywhere who
is not then an authorized employee of Company , any trade secrets, lists of customers, price
lists, or other specialized information or data learned, acquired, or coming to Sales
Representative 's knowledge while employed by Company .
10. Inducing Employees of Company to Leave Company
Any attempt on the part of Sales Representative to induce others to leave Company 's
employ, or any effort by Sales Representative to interfere with Company 's relationship with
other employees, would be harmful and damaging to Company . Representative agrees that
during the term of this employment Agreement and for a period of _______ (number) years
afterward, he will not in any way, directly or indirectly:
A. Induce or attempt to induce any employee to quit employment with Company ;
B. Interfere with or disrupt Company 's relationship with other employees; or
C . Solicit, entice, take away, or employ any person employed by Company .
11. 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.
12. 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 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.
13. Governing Law
This Agreement shall be governed by, construed, and enforced in accordance with the
laws of the State of ______________.
14. 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.
15. 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.
16. 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.
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 placed in writing and signed by each
party or an authorized representative of each party.
19. Assignment of Rights
The 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.
20. In this contract, 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 Company)
________________________ By:_____________________
(P rinted name) ____________________________
________________________ (P rinted name & Office in Corporation)
(Signature of Sales Representative) _______________________
(Signature of Officer)