Compensation. This agreement is made this _________ day of _________, _________[date], between _________, of _________, referred to as the principal, and _________, of _________, referred to as the agent. In consideration of the premises and of the mutual covenants set forth, the parties agree as follows: 1. The principal engages the agent as its sole sales agent in the territory specified, during the term of this agreement, and the agent accepts employment and agrees to devote his [her, its] entire time and energies to the business of the principal and to act as agent in _________. 2. The term of this agreement is _________ years, commencing _________, _________[date]. 3. The territory covered by this agency is _________, referred to as "above territory." 4. All orders procured by the agent shall be subject to the acceptance of the principal at its office in _________. 5. The agent agrees that during the term of this agreement he [she, it] will not directly or indirectly be interested in or engaged in any form or branch of the _________ business, except as agent for the principal. 6. The principal agrees to pay, and the agent agrees to accept, in full compensation for the agent's services, _________ percent of the net profits of the operation of the _________ agency, to be calculated as follows: 7. Net profits shall be the difference between gross receipts and expenditures, as defined. 8. Gross receipts shall include all moneys received by the principal from sales made to customers in the above territory, whether or not made through the intervention of the agent. 9. Expenses shall include the cost to the principal of all merchandise sold to customers in the above territory, including all charges paid or incurred by the principal in connection with the merchandise, and all expenses of the principal in maintaining the _________ office, including rental, insurance, clerk hire, transportation charges and all other actual outlays in connection with the business contemplated by this agreement, and any and all losses not compensated by insurance incurred in the conduct of the business. 10. Accurate records and accounts shall be kept by the principal and by the agent of all transactions under this agreement, and each party's records shall be open to inspection by the other party at reasonable times, and statements of the net profits shall be prepared _________ and submitted by the principal to the agent within _________. 11. The agent agrees to furnish to the principal a bond satisfactory to the principal, insuring the principal against any loss of money or property by reason of any act of the agent. 12. The principal agrees that during the life of this agreement it will not sell or cause any of its articles to be sold in the above-described territory, except through _________, and to refer all inquiries concerning its product from the above-described territory that may be received by it through any source or by any means whatsoever to the _________ for attention. 13. Notices to be given by either party to the other shall be given to the principal at _________ and to the agent at _________. Either party may change the place to which notice may be sent by written notice to the other.
14. This instrument contains the entire agreement between the parties and no terms have been agreed upon or understood between the parties except as set forth.