Contingency Agreement
Contingency Agreement
This letter will serve as confirmation of the work we do to recruit and place personnel
with your firm and the terms under which we will be compensated by your firm for this
work. Our service fees are on a contingency basis and are payable only if a candidate
enters into a service relationship with you or your affiliate within one year after our most
recent communication relating to the candidate.
Our service fee is between 20% - 30% of the candidate’s first year compensation, which
will be defined as the total base salary and reasonably projected bonus, to be determined
by you at time of offer.
Our fee will be invoiced when you and the candidate agree to enter into a relationship.
Payment is due 30 days after the first day of employment. Terms are net 30-days.
Payment not received within 45 days will void our warranties. Unpaid invoices are
assessed a 1.5% service fee per month.
All placements are covered by a 30 - 180 day performance warranty, contingent upon the
service fee paid. A 20% service fee offers a 30 day warranty, a 25% service fee offers a
90 day warranty and a 30% service fee offers a 180 day warranty. Should our candidate
be terminated from employment for any reason (except for changes in our client’s
internal business circumstance), or voluntarily resign his/her position within this time
period. Dennis J. Knox & Company, Inc., will make reasonable effort to replace the
employee at no additional cost. One replacement candidate placed in the identical
position will satisfy the warranty.
You may also elect a 90-day warranty extension beyond the terms listed above. The fee
to extend the warranty is 5% of the candidate’s first year compensation described above.
An extension of the warranty may be executed at any time during the candidates first 90
days (three months) of employment, provided the original placement is timely paid per
the terms described above.
The disclosure of a candidate’s name and confidential information is intended only for the
designated recipient and hiring authority of the client. All information will be held in
confidence and not disclosed to third parties or to any personnel not involved with the
hiring process, without prior written consent of an authorized Dennis J. Knox & Company,
Inc., representative. You agree to indemnify and hold harmless Dennis J. Knox &
Company, Inc., from and against any claim related to breach of this confidence.
Any controversy or claim arising out of or relating to this agreement, or the breach
thereof, including without limitation any issue as to whether such controversy or claim is
arbitrable, shall be settled by the arbitration administered by the American Arbitration
Association (“AAA”) in accordance within its Commercial Arbitration Rules, and
judgment on the award rendered by the arbitrators may be in any court having
jurisdiction thereof. The award shall include a breakdown as to specified claims.
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If a party to this agreement seeks to enforce its rights under this agreement, the non-
prevailing party shall pay all reasonable fees and expenses incurred by the prevailing
party prior to and during the arbitration, including without limitation the prevailing party’s
attorneys’ fees, arbitrators’ fees, AAA administrative and other fees and charges, travel
expenses, out-of-pocket expenses, as well as pre-award and post-award interest at the
rate of 1.5% percent per month, in addition to all other relief awarded.
In addition, if the non-prevailing party does not comply with the arbitration award, it shall
pay all reasonable attorneys’ fees and expenses incurred by the prevailing party in
obtaining the judicial confirmation of such award and in enforcing any judgment entered
on such an award.
The place of arbitration and all hearings associated thereto shall be Los Angeles County,
CA. This agreement shall be governed by and interpreted in accordance with the laws of
the state of California, and the firm consents to the jurisdiction of the state and federal
courts located in California for any motion or lawsuit related to the judicial confirmation
of the arbitration award.
This letter evidences a binding agreement between your firm and Dennis J. Knox &
Company, Inc., Interviewing candidates through our firm indicates your acceptance of
this agreement. Changes and modifications are not valid unless they are in writing and
signed by an authorized representative of Dennis J. Knox & Company, Inc.
Dennis J. Knox & Company, Inc. Client Company Representative
______________________________ ____________________________
Signature / Date Signature / Date
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