Direct Selling Agent Agreement

THIS AGREEMENT (the “Agreement”) is made on [Date, Month, Year], by and
between [Company Name], a Company incorporated under the provisions of the
Companies Act, 1956 and having its registered office at [Address Line 1, Address Line 2,
City, State, Pin Code] (the “Company”) and [Direct Selling Agent], a Company/
Individual, having office at [Address Line 1, Address Line 2, City, State, Pin Code] (the
“Direct Selling Agent”).
NOW, THEREFORE, in consideration of the mutual promises contained herein, the
parties agree as follows:
1. Definitions
As used herein, the following terms shall have the meanings set forth below:
A. “Services” shall mean the Company’s services to be sold by Direct Selling Agent and
such services as may be communicated by the Company in writing to the Direct Selling
Agent from time to time.
B. “Territory” shall be allocated during time of engagement by the Company in writing to
the Direct Selling Agent. Any change in “Territory” shall be communicated by the
Company in writing to the Direct Selling Agent from time to time.
C. Direct Selling Agent will have the title of “Direct Selling Agent.”
2. Appointment
Company hereby appoints Direct Selling Agent as its non-exclusive selling agent for the
services in the territory, and Direct Selling Agent hereby accepts such appointment.
Direct Selling Agent’s sole authority shall be to solicit customers for the services in the
territory in accordance with the terms of this agreement. Direct Selling Agent shall not
have the authority to make any commitments whatsoever on behalf of Company.
3. General Duties
Direct Selling Agent shall use his best efforts to promote the services and maximize the
sale of the services in the territory. Direct Selling Agent shall also provide reasonable
assistance to Company in promotional activities in the territory. Direct Selling Agent will
assist the company by taking part in all promotional events, use the marketing inputs
judiciously for maximizing orders for the company.
4. Reserved Rights
Company reserves the right to solicit/engage other Agents, Direct Selling Agents directly
from businesses within the territory. Direct Selling Agent’s task is to solicit customers
from all potential businesses in the territory.
5. Conflict of Interest
Direct Selling Agent warrants to Company that it does not currently represent or promote
any Services that compete with the Company’s Services. During the term of this
Agreement, Direct Selling Agent shall not represent, promote or otherwise try to sell
within the Territory any Services that, in Company’s judgment, compete with the
Services covered by this Agreement.
6. Independent Contractor
Direct Selling Agent is an independent contractor, and nothing contained in this
Agreement shall be construed to (i) give either party the power to direct and control the
day-to-day activities of the other, (ii) constitute the parties as partners, joint ventures, coowners or otherwise, or (iii) allow Direct Selling Agent to create or assume any
obligation on behalf of Company for any purpose whatsoever. Direct Selling Agent is not
an employee of Company and is not entitled to any employee benefits. Direct Selling
Agent shall be responsible for paying all income taxes and other taxes charged to Direct
Selling Agent on amounts earned hereunder. All financial and other obligations
associated with Direct Selling Agent’s business are the sole responsibility of Direct
Selling Agent.
7. Indemnification by Direct Selling Agent
Direct Selling Agent shall indemnify and hold Company free and harmless from any and
all claims, damages or lawsuits (including reasonable attorneys’ fees) arising out of
negligence or malfeasant acts of Direct Selling Agent or misrepresentation or breach of
any obligations under this agreement.
8. Commission
A. Sole Compensation
The Company shall pay the Direct Selling Agent a commission at such rate as may be
communicated by the Company in writing to the Direct Selling Agent, for whole or part
of the services hereto, based on the Maximum Retailing Price of the product as fixed by
the company on every new order. This commission will be subjected to the relevant taxes
as applicable. The Company reserves its right to revise the rate of commission from time
to time and the same shall be intimated to the Direct Selling Agent in writing by the
Company.
B. Basis of Commission
The Commission shall apply to all sales orders from customers solicited by Direct Selling
Agent. (Customers defined as an individual or a company who have bought the
product/services from the Direct Selling Agent for their own use.) No commissions shall
be paid on (i) orders solicited directly by Company within the Territory; (ii) orders
received from outside the Territory unless otherwise agreed in writing by Company. (iii)
No commission will be paid to the Direct Selling Agent until 100% payment pertaining to
the order is received. The company reserves the right to change the commission / prices
on products as and when required.
C. Time of Payment
The commission on all PAID ORDERS shall be due and payable within ten (10) working
days after the Direct Selling Agent raises invoice.
D. Monthly Statements
The Direct Selling Agent shall submit to the company the monthly statements of
commissions due and payable to Direct Selling Agent under the terms of this Agreement.
9. Sale of the Services
A. Prices and Terms of Sale
Company shall provide Direct Selling Agent with copies of its current market price and
this is subject to change and the sole discretion of the same lies with the company , its
payment schedules, and all Rules and Regulations and other material available for sales
presentation and customer’s information. Direct Selling Agent shall quote to Customers
only those authorized prices, payment schedules, and terms and conditions as informed
by Company.
The services will be activated only after receipt of 100% payment pertaining to the order.
The company will not refund any money in part or in full after payment on order is once
received.
B. Acceptance
All requests for service obtained by Direct Selling Agent shall be subject to acceptance
by Company and all quotations by Direct Selling Agents shall contain a statement to that
effect. Direct Selling Agents shall have no authority to make any acceptance or
commitments to customers. Company specifically reserves the right to reject any request
for service or any part thereof for any reason, Company shall inform Direct Selling Agent
of any written acceptances on commissionable applications/orders.
C. Collection
Full responsibility for collection of payment from customers rests with Direct Selling
Agent.
10. Additional Responsibilities of Direct Selling Agent
A. Expense of Doing Business
Direct Selling Agent shall bear the cost and expense of conducting its business in
accordance with the terms of this Agreement. This would include salaries for the staff of
the Direct Selling Agent who are engaged in the business of selling the products of the
Company, expenses related to communications, telecommunication, mailing, conveyance
and business entertainment if required. The company will not entertain any reimbursement on any expense made by the Direct Selling Agent other than the
commissions.
B. Promotion of the Products
Direct Selling Agent shall make efforts to promote the sale of and stimulate demand for
the Services within the Territory by direct solicitation. In no event shall Direct Selling
Agent make any representation, guarantee or warranty concerning the Services except as
expressly authorized by Company. The Company will take care of all online promotions
on their website and ensure lead generations. Use of company logo, product logo, any
advertising / promotion / marketing activity conceived originally by the Direct Selling
Agent should be first approved in writing by [Company Name] before being
implemented.
C. Agents & Customer Service
Direct Selling Agent shall inform and assist customers on Company’s Services, and shall
perform such additional customer services by e-mail, phone and fax, whenever needed, as
good salesmanship requires and as Company may reasonably request.
D. Books and Records
Direct Selling Agent shall notify Company of any Customer’s complaints regarding either
the Services or Company and immediately forward to Company the information
regarding those complaints.
11. Additional Obligations of Company
A. Assistance in Promotion
Company shall, at its own expense, promptly provide Direct Selling Agent with
marketing and technical information, training concerning the Services, brochures,
instructional material, advertising literature, and other product data.
B. Assistance in Technical Problems
Company shall, at its own expense, assist Direct Selling Agent and customers of the
Services in all ways deemed reasonable by Company in the solution of any problems
relating to the Services.
C. New Developments
Company shall inform Direct Selling Agent of new Products or Services that are
competitive with Company’s Products Services and other market information and
competitive information as discovered from time to time.
12. Trademarks and Tradenames
A. Use. During the term of this Agreement, Direct Selling Agent shall have the right to
indicate to the public that it is an authorized Direct Selling Agent of Company’s Services.
Nothing herein shall grant Direct Selling Agent any right, title, or interest in Company’s
Trademarks. At no time during or after the term of this Agreement shall Direct Selling
Agent challenge or assist others to challenge Company’s Trademarks or the registration
thereof or attempt to register any trademarks, marks or trade names confusingly similar to
those of Company.
13. Non-Compete
For a period of [12 months] after the Direct Selling Agent is no longer in agreement with
the Company, the Direct Selling Agent will not, directly or indirectly, either as
proprietor, stockholder, partner, officer, employee or otherwise, distribute, sell, offer to
sell, or solicit any orders for the purchase or distribution of any products or services
which are similar to those distributed, sold or provided by the Company.
14. Term and Termination
A. Term. This Agreement shall commence on the date first written above for a period of
[2 years] unless terminated earlier as provided herein below.
B. Termination. Either party to this agreement shall have the right to terminate this
agreement with or with out cause with a thirty (30) days written notice to the other party.
C. Return of Materials. All of Company’s trademarks, trade names, data, photographs,
literature, and sales aids, customer related database of every kind shall remain the
property of Company. Within five (5) days after the termination of this Agreement,
Direct Selling Agent shall return all such items to company. Direct Selling Agent shall
not make or retain any copies of any confidential items or information that may have
been entrusted to it. Effective upon the termination of this Agreement, Direct Selling
Agent shall cease to use all trademarks, marks and trade name of Company.
D. This agreement will be reviewed by the company after a period of [12 months]. Any
Direct Selling Agent not performing to the full satisfaction of the company in terms of
securing new orders and company’s policies is liable to be terminated
15. Limitation on Liability
In the event of termination by either party in accordance with any of the provisions of this
Agreement, neither party shall be liable to the other, because of the termination for
compensation, reimbursement or damages on account of the loss of prospective profits or
anticipated sales or on account of expenditures or commitments in connection with the
business or goodwill of Company or Direct Selling Agent.
16. Confidentiality
Direct Selling Agent acknowledges that by reason of its relationship to Company
hereunder it will have access to certain information and materials concerning Company’s
business plans, customers, technology, and products/services that is confidential and of
substantial value to Company, which value would be impaired if such information were
disclosed to third parties. Direct Selling Agent agrees that it shall not use in any way for
its own account or the account of any third party, nor disclose to any third party, any such
confidential information revealed to it by the Company.
Company shall advise Direct Selling Agent whether or not it considers any particular
information or materials to be confidential. Direct Selling Agent shall not publish any
description of the Products/Services beyond the description published by Company and
without the prior written consent of the Company. In the event of termination of this
Agreement, there shall be no use or disclosure by Direct Selling Agent of any
confidential information of Company.
17. Governing Law and Jurisdiction
This Agreement will be governed by and construed in accordance with the laws of
Republic of India. Each Party irrevocably and unconditionally submits to the exclusive
jurisdiction of the [High Court].
18. Entire Agreement
This Agreement sets forth the entire agreement and understanding of the parties relating
to the subject matter herein and supersedes any prior discussions or agreements between
them. No modification of or amendment to neither this Agreement, nor any waiver of any
rights under this Agreement to be done unilaterally and it shall be effective unless in
writing signed by the party to be charged.
19. Notices
Any notices required or permitted by this Agreement shall be deemed given if sent by
certified mail, postage prepaid, return receipt requested or by recognized overnight
delivery service:
If to Company:
[Company Name]
[Address Line 1]
[Address Line 2]
[City, State, Pin Code]
If to Direct Selling Agent:
[Direct Selling Agent]
[Address Line 1]
[Address Line 2]
[City, State, Pin Code]
20. Non-Assignability and Binding Effect
A mutually agreed consideration for Company’s entering into this Agreement is the
reputation, business standing, and goodwill already honored and enjoyed by Company
under its present ownership, and, accordingly, Direct Selling Agent agrees that its rights
and obligations under this Agreement may not be transferred or assigned directly or
indirectly. Subject to the foregoing, this Agreement shall be binding upon and insure to
the benefit of the parties hereto, their successors and assigns.
21. Severability
If any provision of this Agreement is held to be invalid by a court of competent
jurisdiction, then the remaining provisions shall nevertheless remain in full force and
effect.
22. Headings
Headings used in this Agreement are provided for convenience only and all not be used
to construe meaning or intent.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day
and year first above written.
For Company, For Direct Selling Agent,
[Name] [Name]
[Address Line 1] [Address Line 1]
[Address Line 2] [Address Line 2]
[City, State, Pin Code] [City, State, Pin Code]
Date:
Place: