CONTRACT BETWEEN
TRAVEL AGENCY
AND OUTSIDE
SALESPERSON/INDEPENDENT CONTRACTOR
AGREEMENT made this
________ day of ____________________________, 200__, between Jennifer Dugan
(Legal Owner), doing business as Dugan’s Travels LLC, a travel agency, having
its principal place of business 132 Rover Blvd, Los Alamos NM 87544 ,
hereinafter referred to as the Travel Agency, and
____________________________________ (Your name) of
_______________________________________________ (Your street address),
_________________________
( Your City), ___________________ (Your State) ___________ (Your zipcode),
hereinafter referred to as the Independent Contractor.
1. Term of Agreement
The Travel Agency
hereby retains the Independent Contractor to act as an independent outside salesperson
and the Independent Contractor agrees to act in such a capacity on behalf of
the Travel Agency for a period of 12 months to ____/____/____ (put in the date
12 months from now). At the end of that period, the contract shall
automatically be extended for an additional 6 months, unless either party
serves the other with written notice 30 days prior to the expiration date of
his intention not to renew. Insurance will be automatically
renewed and will be responsibility of Independent Contractor unless cancelled
30 days prior.
2. Duties of
Independent Contractor
The Travel Agency
hereby retains the Independent Contractor as a self-employed businessperson to
sell travel and travel services to the public on behalf of the Travel Agency.
3. Compensation of Independent
Contractor
As compensation for the
services rendered by him under this Agreement, the Independent Contractor shall
be entitled to commissions on sales as follows:
4. In General
The Independent
Contractor shall be entitled to 75% of the Gross Commissions received by the
Travel Agency for sales of travel or services by the Independent Contractor.
80% commission is given to agents who stay with the agency for 3 years and do
not leave or go inactive during those 3 years. All expenses relating to these
sales shall be borne by the Independent Contractor and deducted from itemized
commission statement, or Independent Contractor may pay Travel Agency for
related expenses. The Travel Agency will notify the Independent Contractor
prior to deducting any expenses and give the Independent Contractor the
opportunity to send in money to pay for the expenses rather than having it
deducted from commission checks. Most common charges are postage and agent
support fee. This clause is to protect the agency against Independent
Contractor causing expenses on the agency.
Override commissions
received by the Agency for volume sales shall be considered a part of the Gross
Commissions. The Independent Contractor is required to have Error and Omissions
Insurance, which is part of the sign up fee of $130.00. This is non-refundable.
Agent will pay $10 a month for support. If agent makes over $3000 in sales a
month period, that month’s fees will be waived. The fee is calculated from the
beginning of the month until the end. It is then due by the 15th of
the following month. Example: September 1-30th, fee is due by
October 15. A late fee of $5 will be charged
for any payment received after the 15th of the month.
5. Commission
Compensation
The net commission is
defined as the commission to the Travel Agency minus any fees the agent has
incurred like postage and other business related expenses.
6. Agency’s Commission
Compensation
Agency
to Receive Its Share of Commission of Agency's CLIA Number, Pseudo IATA Numbers
or Dugan’s Travels IATA Number Used While the Independent Contractor is free to
do business with any other travel agency or customer, the Travel Agency shall
receive its share of the commission paid by any supplier for any sale in which
the Independent Contractor uses the Travel Agency's CLIA, Pseudo IATAN numbers
or Dugan’s Travels IATA number to process the sale.
7. CRS
Independent Contractor
can be set up on Sabre software directly with Sabre. There is one time set up
charge of $95.00 and then it is $45 a month. This will be set up directly with
Sabre and Independent Contractor will be charged by Sabre monthly. This is only
for trained Sabre agents. Not needed to operate your business. You do
not have to get this- it is not a requirement.
8. Method of Payment
Travel Agency shall pay
Independent Contractor monthly. Travel Agency shall pay agent each month
commission that has been paid by suppliers for travel completed. Each
month a list is provided to the Independent Contractor to locate paid
commissions and request he or she be paid. Travel agency cannot pay
Independent Contractor until after the client has returned from the trip.
Travel Agency shall report gross earning to the IRS (Form 1099) for the
Independent Contractor and pay net to Independent Contractor (minus expenses).
Independent Contractor may have the option of paying agency by check for all
attributed expenses outlined in the agency statement of commission expenses as
opposed to withholding expense items from gross earnings.
Independent Contractor
shall report to Travel Agency all sales made using their IATAN Number, CLIA
Number, and any other account numbers Dugan’s Travels holds. The Independent
Contractor shall also report any expense to be billed to the Travel Agency,
such as Express delivery charges, and additional ticketing fees.
9. Examination of Books
The Independent
Contractor shall have the right, either personally or by accountant retained
and paid by the Independent Contractor, at times mutually convenient to the
Travel Agency and the Independent Contractor, but in any event at least once
during each half of the calendar year, to examine books and accounts of the
Travel Agency insofar as they relate to transactions affecting the amount of
the Independent Contractor's compensation.
10. Independent Contractor
to Provide Own Business Supplies and Be Responsible for Own Expenses
Independent Contractor shall provide his own business cards and other
promotional materials and shall otherwise be responsible for all expenses
incurred in performing his duties under this Agreement.
11. Place of Work
The Independent
Contractor may choose where the work is to be performed, is not required to
work on the premises of the Travel Agency, and is not required to answer the
phones, or perform any other duties at the Travel Agency's offices.
12. Hours
Independent Contractor
may work whatever hours he/she wishes. The Travel Agency may require no fixed
hours. The Independent Contractor shall not be required to attend office
meetings or office training sessions. In order to help with ticketing, we will
do a flexible schedule between Independent Contractor and other ticketing
agents.
13. Risk of Loss/Profit
Potential
Independent Contractor
assumes the risk of incurring a loss if his/ her share of sales commissions
does not cover the Independent Contractor's expenses. Similarly, Independent
Contractor enjoys the right to earn a profit yielded by commissions shared
pursuant to this Agreement.
14. No Entitlement to
Vacation or Other Benefits as Independent Contractor
As a self-employed
individual, the Independent Contractor shall not receive or earn any vacation
or sick pay from the Travel Agency and is not covered under the agency's
medical or dental plan. The Travel Agency will offer IATAN ID Card to
Independent Contractors whom meet the minimum required earnings of $5000.00
commission in a year.
15. Responsible for
Errors and Omissions and Expenses
Independent Contractor
is responsible for all Errors and Omissions related to his/her work as well as
any debit memos. If Independent Contractor decides to become an associate of
Dugan's Travels, he or she must have coverage under an Error and Omissions
Insurance. Low cost insurance is part of our sign up. It is part of the sign up
cost and is not additional. Those who already have coverage for their own
agency, do not need to pay the $130.00 start up. Any costs incurred and
not covered by the insurance are the responsibility of the Independent
Contractor. The insurance company has it’s own requirements for claims. A claim
may or may not be approved. A deductible is currently required on any approved
claims. $50.00 renewal each year due.
Insurance covers
Independent Contractor only when working with Dugan’s Travels. Only the
person’s name on this contract is covered. If anyone works with the
Independent Contractor whether it be a family member or business associate and
is not covered individually, the insurance company will deny any
claim. Only named Independent Contractors working with Dugan’s Travels are
covered under the insurance provider. If Independent Contractor works with
other agencies, the insurance will not cover anything done with other agencies.
16. Ability to Hire
Assistants
Independent Contractor
retains the right to employ whatever assistants or bring in whatever partners
he/she may require at Independent Contractor's expense in order to accomplish
the goal of travel sales contemplated by this Agreement. Anyone handling any
bookings or reservations for the Independent Contractor should be covered under
the insurance policy by being added onto the policy for the $100.00 yearly
policy. If the Independent Contractor has someone who is not covered on the
policy working with him/her and an incident occurs, the insurance company can
deny the claim due to no coverage.
17. Independent
Contractor Shall Be Responsible for Filing of Federal, State, and Local
Estimated Payments on Commissions Received from Travel Agency, and for Other
Assessments Independent Contractor agrees to be fully responsible for complying
with all federal, state, and local laws in connection with performance of this
Agreement, including, but not limited to, payment of any estimated or other
federal, state, or local income taxes, payment of applicable charges for social
security, FICA, worker's compensation and obtaining any required state or local
licenses or registration as a self-employed seller of travel/independent
contractor outside salesperson.
Independent Contractor
agrees to indemnify and hold Travel Agency harmless for any assessments against
Travel Agency because of any failure by Independent Contractor to properly pay
federal, state, or local income taxes (including estimated tax payments) and
file returns in connection therewith, or to pay social security, FICA, or
worker's compensation.
18. Ownership of
Customers
The parties acknowledge
that all customers of the Independent Contractor are and shall remain the
property of the Independent Contractor. If the Independent Contractor shall
cease to be associated with the Travel Agency for any reason, all customers of
the Independent Contractor shall be free to continue doing business with the
Independent Contractor independently, or through any other travel agency.
19.
Ownership of Bookings
Any
booking made with Travel Agency's CLIA, Pseudo IATAN numbers or Dugan’s Travels
IATA number is the property of Dugan’s Travels. Independent Contractor may not
move bookings to another agency in the event of termination or other reasons.
Any bookings moved to another agency will cause Independent Contractor to be
terminated and future commissions waived as well as the Travel Agency may seek
damages in the amount of business loss as a result of Independent Contractor
transferring bookings to another agency.
20. Rights Of Parties
Involved
Information
on other Independent Contractors with Travel Agency is not to be disclosed to
other parties. Any bookings booked by other Independent Contractors are not to
be disturbed by Independent Contractor. Information about other Independent
Contractors are not to be disclosed to other parties. This includes but is not
limited to addresses, email, names and other contact information. Other
Independent Contractors information is not to be sold or given to other
interested parties. Training materials, information given to Dugan’s Travels Independent
Contractors including passwords to websites, handbook, informational files, and
other property of Dugan’s Travels is not to be shared with parties not
contracted with Dugan’s Travels. Breach of information will result in legal
action.
21.
Events Causing Termination
This Agreement is NOT
terminable prior to its expiration at the will of either party, but is instead
terminable by the Travel Agency only on the following grounds:
(a) The occurrence of
circumstances that make it impossible or impractical for the business of the
Travel Agency to continue;
(b) The death of the
Independent Contractor;
© The willful or
negligent breach of duty by the Independent Contractor in the course of his
performance under this Agreement;
(d) The continued
incapacity on the part of the Independent Contractor to perform his/her duties.
This includes not reading emails or being unable to be contacted by the host
agency.
(e) The occurrence of
agent and agency inability to work together due to conflicts.
(f) The membership fee
not paid by the Independent Contractor within 2 weeks of due date.
(g) The Independent
Contractor does not renew his/her insurance at the yearly renewal.
22. Effect of
Termination on Compensation
In the event of the
termination of this Agreement prior to the completion of its term specified
herein, the Independent Contractor shall be entitled to the compensation earned
by him/her prior to the date of termination as provided for in this Agreement
computed pro rata up to and including that date; the Independent Contractor
shall be entitled to no further compensation as of the date of termination.
23. Time Limit for
Claiming Commissions After Date of Termination
All claims of the
Independent Contractor for commission on sales, regardless of whether the sales
are made by the Independent Contractor or others, are waived by the Independent
Contractor if not made within sixty (60) days of the date of termination. Independent Contractor must submit in writing any commissions due to
Independent Contractor within 60 days of termination or commissions will not be
paid.
24. Remedies
Any controversy or
claim arising out of or relating to this Agreement shall be settled by the
courts of Los Alamos, New Mexico.
25. Attorney's Fees and
Costs
If any action at law or
in equity is necessary to enforce or interpret the terms of this Agreement, the
prevailing party shall be entitled to reasonable attorneys fees, costs, and
necessary disbursements in addition to any other relief to which he may be
entitled.
26. Partial Validity
If any provision of
this Agreement is held by a court of competent jurisdiction to be invalid, void
or unenforceable, the remaining provisions shall nevertheless continue in full
force without being impaired or invalidated in any manner.
27. Law Governing
Agreement
This Agreement shall be
governed by and construed in accordance with the laws of New Mexico.
28. Non-Assignability
This is a personal
service agreement that shall not be assignable by the Independent Contractor
without the written consent of the Travel Agency.
29. Complete Agreement;
Modification or Waiver
This agreement
represents the complete understanding of the parties with respect to the
described outside sales relationship. It is not to be amended after the date
hereof except by an instrument in writing signed by the parties. No amendment,
modification, termination or waiver shall be binding unless in writing and
signed by the party against whom the amendment, modification, termination or
waiver is sought to be enforced. No waiver of any provisions of this Agreement
shall be deemed, or shall constitute, a waiver of any other provisions, whether
or not similar, not shall any waiver constitute a continuing waiver.
INITIAL THESE TERMS
Your first fee is due
on the 15th of ____________________ (put the month that is 3 months
from when you are signing this) By putting your initials here, you agree
to pay the $10.00 fee by that date. If you do not pay it by the 15th,
you will be charged a $5 late fee. You do not have to pay it if you do
$3000 in bookings in the month of _______________ (put the month that is 2
months from now)
Initial Here ______
Your
insurance will be automatically renewed a year from the date you signed this
contract. You MUST contact us to cancel your insurance, otherwise you will
be responsible for the $50 renewal charge.
Initial Here ______
You
agree to work with other agents and treat others with respect. You will contact
us if you decide this is no longer something you want to pursue. You will
communicate with the agency and be an active member of our agency.
Initial
Here ______
Executed at
____________________________ (Your City), ___________________ (Your State), on
the day and year first above written.
Dugan’s Travels
By:__Jennifer Dugan
(Jennifer Dugan, Owner)
Independent Contractor
(this is you)
By:__________________________________________________
EMAIL ADDRESS: (this is
where we will email you the information to get started)
______________________________________________________________
TAX ID NUMBER (this is your
social security number or tax id for a corporation)
___________________________________________________________________
Your date of birth
_____________________________________________
Dugan's Travels
reserves the right to do a background check on anyone who becomes an agent with
our agency. If you have a criminal record, we will not allow you to work with
our agency.
Please fax to 505-672-0779
Or mail to
Dugan’s Travels
132 Rover Blvd
Los Alamos, NM 87544
If you want to pay via
credit card please visit the link at www.travelathome.com to input your credit
card safely online.
It
can take some time to get you started. If you pay by check, your check must
clear the bank before we get you started. If you pay by credit card, we must
charge the card and will try our best to get it done as soon as possible.
However it can take up to 3 business days to get it processed depending on how
many contracts we get in. We will email you with the information to get started
at the email address above.
If
someone referred you to the agency, we would like to thank them. Please give us
the person’s name. Thank you.
Referred
By:
___________________________________________________________________