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SALES DISTRIBUTION AGREEMENT
THIS AGREEMENT, entered into this
day of
,
, by and between
(Name of Manufacturing Co. Rep.), hereinafter First Party, and
(Salesman's Name), hereinafter Second Party, for sales services is subject to the following terms and conditions:
1.
BUSINESS RELATIONSHIP: First Party shall hire Second Party, an
independent contractor. Second Party shall be responsible for any and all appropriate
worker's compensation insurance, life insurance, health insurance and automobile
insurance for Second Party. Before engaging in his/her duties under this contract,
Second Party shall first cause to be issued to him/herself certain insurance regarding
the foregoing so as to provide protection for First Party against any loss or damage to
life or property that may involve Second Party and shall provide proof of such insurance
to First party. Additionally First Party shall be responsible for any and all taxation on
his/her earnings and shall comply with all government regulations.
2.
TERM: The term of this agreement shall be for a period of
year(s) commencing with the date of this agreement, subject, however, to termination as
hereinafter provided. Upon expiration, this agreement may be renewed for regular
periods of one (1) month, in the event neither party submits a Notice of Termination.
The terms and conditions during the renewal period shall be the same as set out in this
agreement unless and until a written renewal is signed between the parties.
3.
PRODUCT LINES: The product lines to be sold by Second Party shall be
determined by the First Party and may include any new product lines which may be
added from time to time. For existing product lines, see attached Addendum "A."
4.
BEST EFFORTS: Second Party agrees that he/she will at all times faithfully,
industriously, and to the best of his/her ability, experience and talents, perform all of the
duties that may be required of and from him/her pursuant to the express and implicit
terms hereof, to the reasonable satisfaction of First Party.
5.
PRODUCT COSTS: The product and the prices of the product sold by the
Second Party will be set by the First Party prior to sales and at established prices for
the customer. The First Party shall honor the sale at the quoted price. Price changes
shall be provided in advance of sales in order to avoid customer confusion.
6.
COLLECTION OF ACCOUNTS: The Second Party shall be responsible for
the collection of any and all accounts sold by him/her. Payment of commissions on a
given account will not be made by the First Party until the customer account is paid by
the customer.
7.
COMPENSATION: The Second Party shall be paid
% of his/her gross sales commission on each sale made. The remaining
% of the commission shall be retained by the First Party in order to offset sales costs and maintenance of
customer accounts. Commission shall be paid on the first day of each month on all
accounts paid by customers before the 25th day of the preceding month. Payments
made on accounts after the 25th day of the preceding month shall be paid the following
month. The Second Party may draw up to $
per month against his/her commission for a period of up to
months. |
