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Referral Partner Agreement

Last updated December 3, 2024

1. Definitions

  • Company: Worca, Inc., Delaware corporation, principal office at 1631 Electric Ave, Venice, CA 90291
  • Referral Partner: Entity or individual executing the Engagement Letter, operating under this Agreement
  • Referred Client: Company or organization introduced by the partner that becomes a paying client
  • Referral Fee: Compensation due upon successful conversion of a referred prospect
  • Gross Profit: Net revenue from a referred client during their first 12 months, calculated as gross sales minus direct costs including contractor compensation, employment taxes, and insurance

2. Engagement Letter

The Engagement Letter formalizes the partnership and incorporates:

  • Partner’s legal name and address
  • Authorized representative details
  • Acknowledgment of this Agreement
  • Custom referral fee terms and payment schedules

The Engagement Letter is integral and incorporated by reference.

3. Relationships

Partners function as independent contractors. No partnership, joint venture, or employment relationship exists. Partners cannot represent themselves as company employees or agents.

4. Referral Process

4.1 Submission Methods

  • Email introductions
  • Company’s designated referral portal
  • Pre-approved written submissions

4.2 Valid Referral Criteria

Referred clients must not already exist in the company database or have had substantial prior interactions.

4.3 Verification

Company reviews submissions within 3 business days and notifies partners of status.

4.4 Support

Partners may assist in nurturing prospects through coordinated efforts.

5. Referral Fees and Payment Terms

5.1 Fee Structure

Default rate is 10% of the Gross Profit generated during the first 12 months, beginning when the first payment is received from the referred client. Custom terms in the Engagement Letter supersede defaults.

5.2 Payment Schedule

  • Calculated monthly
  • Disbursed within 30 days of month-end
  • Custom schedules outlined in the Engagement Letter

5.3 Payment Conditions

Fees paid only if referred clients fulfill contractual obligations. Early termination or default may result in proportional adjustment or discontinuation.

5.4 Tax Documentation

Partners must provide accurate tax documentation (W-9 for U.S. partners). Payments may be delayed without proper documentation.

6. Responsibilities of the Referral Partner

6.1 Ethical Conduct

Partners must act in good faith and accurately represent services. Fraud or misrepresentation triggers immediate termination and fee forfeiture.

Partners must comply with all applicable laws and regulations.

6.3 Confidentiality

Partners must protect proprietary information, including client details and pricing.

6.4 Non-Solicitation

Partners cannot solicit or engage company-introduced clients outside this Agreement for 12 months following termination.

7. Responsibilities of the Company

7.1 Resources

The company provides tools and materials for successful referrals.

7.2 Payment

The company tracks referrals and processes fees timely per Section 5.2.

7.3 Confidentiality

The company protects partner information.

8. Term and Termination

8.1 Standard Termination

Either party may terminate with 30 days’ written notice.

8.2 Termination for Cause

Company may terminate immediately for unethical conduct, misrepresentation, or non-compliance.

8.3 Post-Termination

Company pays fees for contracts signed before termination if the partner remains compliant.

9. Governing Law and Dispute Resolution

9.1 Jurisdiction

Governed by California law without conflict-of-law principles.

9.2 Arbitration

Disputes resolved through binding arbitration under American Arbitration Association rules in Los Angeles County, California.

10. Miscellaneous

10.1 Entire Agreement

This Agreement, the Engagement Letter, and appendices constitute the complete understanding.

10.2 Amendments

Changes require written signatures from both parties.

10.3 Survival

Confidentiality, Non-Solicitation, and Governing Law provisions survive termination.

10.4 Counterparts

Execution in counterparts permitted.