Independent Contractor Agreement
AGREEMENT BETWEEN SmartTraveler.com, Inc. (a Florida
Corporation) d/b/a Home Based Cruise Agents ("Company"), located
at 1128 Royal Palm Beach Blvd., #471, Royal Palm Beach, FL 33411
and ________________________________, an Independent Contractor
("Independent Contractor "). The Independent Contractor shall be
identified as follows:
Name:_____________________________________________________
Type of Entity:
- __Individual
- __Sole proprietorship
- __Partnership
- __Corporation
Address:___________________________________________________
City/State/ZIP:_______________________________________________
Business Telephone:__________________________________________
Social Security or Employer Identification Number:____________________
IN CONSIDERATION of the promises and mutual covenants
and agreements contained herein, the parties agree as follows:
Work to Be Performed
COMPANY desires that the Independent Contractor
perform, and the Independent Contractor agrees to perform, the following
work: Sales of travel, including cruises, tours, vacation packages,
airfare, hotels, car rentals and ancillary, related products.
Term of Agreement
The services called for under this Agreement shall
commence on _______________ and terminate one year from this date.
Renewal of Agreement
This agreement shall automatically renew each year
on it's anniversary date if Independent Contractor has produced
sales for Company at a minimum of the following schedule:
- First year commissionable gross sales (not to
self) must exceed $10,000.00
- Second year commissionable gross sales ( not
to self) must exceed $25,000.00
- Each subsequent year, commissionable gross sales
(not to self) must increase 20% from the minimum sales level required
from the previous year.
These minimums will be in effect unless otherwise
waived in writing by Company.
Technical Direction
The Independent Contractor shall receive technical
direction only from Company designee, as authorized in writing.
Terms of Payment
Company shall pay the Independent Contractor according
to the following terms and conditions:
75% of regular commissions on all products sold
to Contractor's clients.
100% of regular commissions on products sold to
self, for the sole use of, and in the name of, Independent Contractor
only.
Commissions retained by Company will equal 25% of
the regular commission, based on the price quoted by the supplier.
Contractor agrees that if (s)he discounts the commission to the
purchaser, (s)he is discounting his/her own commission only, and
such discount will not have any effect on the commission due to
Company. In no case shall any product be sold for less than the
net cost plus 25% of the regular commission.
Exception: Internet sales leads may be made
available to Contractor. Contractor may accept such leads, but is
not required to do so. If Company provided leads are accepted and
subsequent sales made, commissions retained by Company will equal
50% of the commissions earned on such sales, including insurance,
shore excursions, airfare, group tour conductor, bonus commissions,
etc., based on the final price quoted to the consumer. Company agrees
that if contractor discounts the commission to the purchaser, Company
will participate 50/50 in the discounting, up to 20%, for a total
combined discount of 40% of the normal commission. Contractor agrees
that if (s)he discounts the commission to the purchaser more than
40%, (s)he is discounting his/her own commission only for any amounts
that exceed the 40%, and such discount will not have any effect
on the commission due to Company. In no case shall any "provided
lead" product be sold for less than the net cost plus 30% of
the regular commission.
Commission Payment Schedule: 1) Cruises &
tours paid by credit card - Commissions are paid within 2 weeks
of receipt from the cruise line or tour operator. Normally 1-2 weeks
after travel completion. 2) Cruises &
tours paid by cashiers check, personal check or money order - Commissions
are paid one week after final payment is made if 30 days or less
prior to travel. If more than 30 days prior to travel, commission
is paid at 30 days prior to travel. 3) All
other travel services eligible for commissions - Commissions are
paid within 2 weeks of receipt from the supplier, normally 2-4 weeks
after travel completion.
Exception: Commission payments will be made
ONLY if all required paperwork relating to the booking has been
submitted correctly to, and received by, our main office. Until
all paperwork has been received and processed, related commission
payments will be held pending receipt. If required paperwork for
any booking is not received within 30 days of the initial booking
date, all commissions due to agent for that booking will be forfeited.
Booking forms, credit card authorization forms, and any other forms
deemed necessary by Company from time to time shall constitute the
"required paperwork".
Reimbursement of Expenses
Company shall not be liable to the Independent Contractor
for any expenses paid or incurred by the Independent Contractor
unless otherwise agreed to in writing.
Licensing
Independent Contractor shall acquire all legally
necessary licenses required to do business. Company shall not be
liable to the Independent Contractor for any expenses paid or incurred
by the Independent Contractor to secure licensing unless otherwise
agreed to in writing.
Federal, State, and Local Payroll Taxes
Federal, state, and local income tax and payroll
tax of any kind shall not be withheld or paid by Company on behalf
of the Independent Contractor or the employees of the Independent
Contractor. The Independent Contractor shall not be treated as an
employee with respect to the services performed hereunder for federal,
state, or local tax purposes.
Notice to Independent Contractor About Its Tax
Duties and Liabilities
The Independent Contractor understands that he or
she is responsible to pay, according to law, the Independent Contractor's
income taxes. If the Independent Contractor is not a corporation,
the Independent Contractor further understands that the Independent
Contractor may be liable for self-employment (social security) tax,
to be paid by the Independent Contractor according to law.
Responsibility for Workers' Compensation
No workers' compensation insurance shall be obtained
by Company covering the Independent Contractor or employees of the
Independent Contractor. The Independent Contractor shall comply
with the workers' compensation law concerning the Independent Contractor
and the employees of the Independent Contractor.
Client Payments
All checks and/or money orders must be made payable
to Absolute Best Cruises. No cash is to be accepted from clients.
Contractor must insist that client pay by check or money order payable
to Absolute Best Cruises. Credit card payments may be made directly
to suppliers on behalf of Absolute Best Cruises.
Termination of Agreement
This Agreement may be terminated at any time by
Company or the Independent Contractor, upon the giving of written
notice to the other party. Notice shall be deemed to have been sufficiently
given either when served personally or when sent by first-class
mail addressed to the parties at the addresses set forth in this
Agreement. Company shall not be liable for, nor shall the Independent
Contractor be liable to perform, any services or expenses incurred
after the receipt of notice of termination. After termination, Company
will assess a $25.00 per person accounting/service fee for any remaining
bookings of Contractor. These fees will be assessed against any
commissions due to Contractor after the date of termination.
Independent Contractor Status
The Independent Contractor expressly represents
and warrants to Company that (1) he or she is not and shall not
be construed to be an employee of the Company and that his or her
status shall be that of an independent contractor for which he or
she is solely responsible for his or her actions and inactions;
and (2) the Independent Contractor shall act solely as an Independent
Contractor, not as an employee or agent of Company; and (3) the
Independent Contractor is not authorized to enter into contracts
or agreements on behalf of Company or to otherwise create obligations
of Company to third parties.
E & O insurance
Independent Contractor must carry errors and omissions
insurance in an amount of $1,000,000.00. Company will provide an
option to purchase this insurance through our home office policy,
at a competitive rate.
Benefits of Travel
Company agrees to provide Independent Contractor
with all travel benefits afforded Company by it's suppliers after
Independent Contractor has achieved sales of $10,000.00 (not to
self) the first year and the required sales levels for each subsequent
year for which the Contractor qualifies to remain associated with
Company as an HBCA.
Assignability
This Agreement shall not be transferred or assigned,
in whole or in part, by the Independent Contractor without the prior
written consent of Company.
Choice of Law
Any dispute under this Agreement, or related to
this Agreement, shall be decided in accordance with the laws of
the state of Florida, and must be brought in a court located in
Broward County, Florida..
Agreement
This Agreement supersedes all prior oral or written
agreements, if any, between the parties and constitutes the entire
agreement between the parties. The Agreement cannot be changed or
modified orally. This Agreement may be supplemented, amended, or
revised only in writing by agreement of the parties.
Changes to Agreement
Any changes to Agreement will become effective on
each anniversary date of Agreement, based upon Agreement then in
effect for new Independent Contractors, or upon written notice from
Company to Independent Contractor.
Confidential Matters and Proprietary Information
The Independent Contractor recognizes that during
the course of contract performance he or she may acquire knowledge
or confidential business information or trade secrets. The Independent
Contractor agrees to keep all such confidential information in a
secure place and further agrees not to publish, communicate, divulge,
use, or disclose, directly or indirectly, for his or her own benefit
or for the benefit of another, either during or after contract performance,
any such confidential business information or trade secrets. Upon
termination or expiration of this Agreement, Independent Contractor
shall deliver all records, data, information, and other documents
produced or acquired during the performance of this Agreement and
all copies thereof to COMPANY. Such material shall remain the property
of COMPANY. This obligation of confidence shall not apply with respect
to information that (1) is available to the Independent Contractor
from third parties on an unrestricted basis; or (2) is disclosed
by COMPANY to others on an unrestricted basis.
Conflicts of Interest
The Independent Contractor shall not act as an agent
for, consultant to, or as an officer, employee, or other representative
of any subcontractor or supplier to Company, or serve in any of
the foregoing capacities for any of Company 's competitors or prospective
competitors, without giving prior written notification to Company.
The Independent Contractor hereby warrants that there is no conflict
of interest between the Independent Contractor's other employment,
if any, or other contracts, if any, and the activities to be performed
hereunder. The Independent Contractor shall advise Company if a
conflict of interest arises in the future.
The Independent Contractor agrees to execute any
and all documents prepared by Company and to do all other lawful
acts as may be required by Company to establish, document, and protect
such rights.
The Independent Contractor has acquired or shall
acquire from each of his or her employees, consultants, and subcontractors,
if any, the necessary rights to all such works, trademarks, and
inventions produced by such employees, consultants, and subcontractors,
within the scope of their employment by the Independent Contractor
in performing services under this Agreement. The Independent Contractor
shall obtain the cooperation of each such employee to secure to
Company or its nominees the rights Company may acquire in accordance
with the provisions of this clause.
During the term of this agreement, Independent Contractor
agrees to make all their travel sales and reservations through Company.
Independent Contractor agrees that all customer leads provided by
Company remain the property of Company. Any Independent Contractor
found to be selling travel through any other "outlet"
will be removed from any association with company and will have
all remaining commissions due reduced by a $100.00 per person processing
fee imposed by Company.
Reports
The Independent Contractor, when directed, shall
provide written reports with respect to the services rendered thereunder.
Security Regulations
The Independent Contractor shall comply with all
applicable security regulations of Company.
IN WITNESS WHEREOF, the parties hereto have caused
this Agreement to be executed as of ______
_________________ [date].
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INDEPENDENT CONTRACTOR
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COMPANY
SmartTraveler.com, Inc.
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By_____________________
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By_____________________
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_______________________
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_______________________
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(Print Name)
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(Print Name)
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_______________________
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_______________________
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Title (if applicable)
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Title
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