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.

 

This is not a substitute for legal advice.  An attorney must be consulted.
Copyright 1994 - 2015 by LAWCHEK, LTD.

 

 
          8. EXPENSES: The First Party agrees to advance up to $                 per month to the Second Party for expenses (i.e., hotel reservations, mileage, phone calls, postage, etc.). Expenses must be verified by the Second Party prior to payment by the First Party.
          9. TERRITORY: The Second Party shall sell only the products of the First Party in the areas to be determined from time to time by the First Party. The territory for the Second Party shall be the following:                                                      
                                                        
(Description of territory).  The First Party reserves the right to change the boundaries of the aforementioned territory by giving written notice either personally delivered or by mailing to the Second Party's last known address.
          10. TERMINATION: This contract may be terminated by either party on 30 days' written notice with or without cause. The First Party, at any time, may terminate the contract relationship for cause, without notice and without liability for expenses incident to termination.
          11. COVENANT NOT TO COMPETE: At no time during the term of this agreement or for a period of three (3) years immediately following the termination of the employment, regardless of who initiated the termination, will the Second Party, in any way directly or indirectly, for him/herself or on behalf of or in conjunction with any other person, firm, partnership or corporation, solicit, divert or take away any customer of the First Party.
          12. CHOICE OF LAW: This agreement shall be construed according to the laws of the State of                        .
          13. OTHER PROVISIONS:

 

 

          Dated at                                                                                   (location),                          (state), on this          day of                                      ,         .

 

                                                                                 
FIRST PARTY
MANUFACTURER REP

 

SECOND PARTY
SALESPERSON
                                                                                 
WITNESS WITNESS

 

This is not a substitute for legal advice.  An attorney must be consulted.
Copyright 1994 - 2015 by LAWCHEK, LTD.

 

This is not a substitute for legal advice.  An attorney must be consulted.
Copyright 1994 - 2015 by LAWCHEK, LTD.

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