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Contingency Placement Fee Agreement

This agreement (hereinafter referred to as AGREEMENT) is made and entered into on ________________, 2008, (hereinafter referred to as EFFECTIVE DATE), by and between (client name), (hereinafter referred to as CLIENT), and (recruiting firm name) (hereinafter referred to as RECRUITING FIRM). RECITALS A. B. CLIENT is (client name), located at (physical address), and provides (description of clients products and services). RECRUITING FIRM is (recruiting firm name), located at (physical address), and is in the business of providing employment recruiting services to companies such as (client name). CLIENT desires RECRUITING FIRM to provide, when requested and on a non-exclusive basis, employment recruiting services. Now, therefore, CLIENT and RECRUITING FIRM hereby agree as follows: AGREEMENT 1. SERVICES 1.1 Upon request by CLIENT, RECRUITING FIRM shall use its best efforts to identify and refer qualified job applicants to CLIENT so they may be considered for potential employment in a full-time position with CLIENT. RECRUITING FIRM shall carefully screen the job applicants it refers to CLIENT to determine their qualifications and competence for a suitable job opening with CLIENT. This screening shall include determining job applicants suitability for employment with CLIENT based on criteria such as a job applicants years of relevant work experience, educational background, and overall ability to perform work in a suitable job with CLIENT. This AGREEMENT does not constitute an exclusive engagement of RECRUITING FIRMS services by CLIENT, or a promise by CLIENT to meet any or all of its employment needs



through RECRUITING FIRM. CLIENT is free to use or not use RECRUITING FIRM as it deems fit in its sole discretion. 1.3 RECRUITING FIRM agrees to provide CLIENT with competent job applicants as requested by CLIENT to meet CLIENTS hiring needs for full-time employees. Job applicants shall have demonstrated prior work experience or skills that would allow them perform work for CLIENT before being referred by RECRUITING FIRM. RECRUITING FIRM will make its best efforts to refer job applicants with experience and skills of special interest to CLIENT based on their job requirements, areas of specialization and industry. CLIENT shall also have the right, in its sole discretion, to reject any job applicant or individual referred by RECRUITING FIRM for potential employment that it deems to be unqualified for employment.


COMMUNICATION 2.1 CLIENT shall make its best effort to provide RECRUITING FIRM with a detailed description of its job openings, job requirements and job responsibilities, as to assist RECRUITING FIRM in finding and referring qualified job applicants who are interested in pursuing employment with CLIENT. When requested by RECRUITING FIRM, CLIENT will provide an update regarding its consideration of job applicants referred by RECRUITING FIRM. RECRUITING FIRM agrees to refer job applicants to CLIENT in a manner that is suitable for CLIENT, including by facsimile, electronic mail, regular postal mail, or telephone.



QUALIFICATION 3.1 RECRUITING FIRM shall appropriately screen the job applicants it refers to CLIENT. RECRUITING FIRM may use interviewing, skills certification, reference checks, testing and/or other methods to verify the qualifications of job applicants as it relates to performing work with CLIENT. RECRUITING FIRM will assist CLIENT in assessing job applicants suitability for employment by sharing and facilitating relevant information to assist CLIENT in making such a determination. This information includes, but is not limited to, a


job applicants resume, work history, employment status, interview availability, salary expectations and related items. 4. PLACEMENT FEE PAYMENT AND INVOICING 4.1 CLIENT will pay RECRUITING FIRM a placement fee for each job applicant referred by RECRUITING FIRM who is hired by CLIENT in any position, department or capacity. The placement fee charged to CLIENT will equal (percentage agreed to) of the first years annual salary of the job applicant hired. RECRUITING FIRM will invoice CLIENT for the placement fee on or around the first day of work of a hired job applicant referred by RECRUITING FIRM. Placement fees are due and payable within thirty (30) days of receipt of invoice. The credit terms for invoices under this AGREEMENT shall be net thirty (30) days. Any invoice that is unpaid within thirty (30) days shall accrue late charges in the amount of one (1%) per month until paid.




TERMINATION 5.1 The term of this AGREEMENT shall be for one (1) year beginning on the EFFECTIVE DATE. Both parties agree that this AGREEMENT shall automatically renew for an additional one (1) year term unless terminated, in writing, thirty (30) days prior to its expiration. Either party may terminate this AGREEMENT at any time, for any reason, upon thirty (30) days written notice to the other party. Termination of this AGREEMENT shall not affect any right or obligation of either party that has accrued prior to such termination.


REPLACEMENT GUARANTEE 6.1 In the event that a job applicant referred by RECRUITING FIRM and hired by CLIENT terminates their employment with CLIENT within ninety (90) days of their first day of work, RECRUITING FIRM will search for and refer job applicants that may be considered by CLIENT as a suitable replacement at no additional charge to CLIENT.


INTEGRATION 7.1 This document contains the entire AGREEMENT between the parties hereto and supercedes any and all prior negotiations, commitments, agreements and understanding between the parties. The language of this AGREEMENT shall control all attachments hereto unless otherwise stated. No representations or warranties, whether expressed or implied, have been made by any party except as expressly stated herein.


GOVERNING LAW 8.1 The validity, performance, construction and interpretation of this AGREEMENT shall be governed by the State of (your state).


NOTICES 9.1 Any notice to be made in connection with this AGREEMENT shall be made in writing and shall be deemed effectively given when delivered in person or sent by registered or certified mail by one party to the other party, as follows: CLIENT Name CLIENT Address RECRUITMENT FIRM Name RECRUITMENT FIRM Address


INDEMNIFICATION 10.1 RECRUITING FIRM will make its best efforts to effectively screen job applicants for suitable employment with CLIENT. CLIENT acknowledges that RECRUITING FIRM does not control the performance or actions of job applicants it refers to CLIENT. CLIENT indemnifies and holds harmless RECRUITING FIRM for any liability, expense, loss or damage caused by any act, neglect, default or omission made by RECRUITING FIRM or any of its agents or employees.

10.2 RECRUITING FIRM holds harmless CLIENT for any liability, expense, loss or damage caused by any act, neglect, default or omission made by CLIENT, its agents or employees, related to the consideration, hiring or employment of job applicants referred by RECRUITING FIRM.


NON-SOLICITATION 11.1 For a period of one (1) year after placing a job applicant with CLIENT, RECRUITING FIRM agrees not to solicit the existing employees of CLIENT to pursue employment with any other company or organization.


ASSIGNMENT 12.1 Neither party may assign any rights nor delegate any duties hereunder without the express written consent of the other party.


SEVERABILITY 13.1 If any part of this AGREEMENT is held by a court or arbitrator to be invalid, void or unenforceable, the remaining provisions will nevertheless continue in full force and effect.


RELATIONSHIP OF THE PARTIES 14.1 RECRUITING FIRM will perform the services and duties hereunder as an independent contractor and not as an employee, agent, partner of, or in joint venture with CLIENT.

IN WITNESS, WHEREOF, both parties have executed this AGREEMENT on the dates written below: RECRUITING FIRM NAME Signed: _________________________ Date: _________________________ CLIENT NAME Signed: ___________________ Date: ___________________