Employment of Sales Representative as Independent Contractor
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 , working in accordance with
policies, procedures and directions from Company .
C. Independent Contractor Status
Sales Representative is an independent contractor and is not an employee,
servant, partner or joint venturer of Company . Company shall determine the services to
be provided by Sales Representative , but Sales Representative shall determine the legal
means by which it accomplishes the services in accordance with this Agreement.
Company 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. Sales Representative is not entitled to receive the benefits which employees of
Company are 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
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)