Typical Seller Agreement for Industrial Exchange Corporation Websites:
Industrial Exchange Corporation (IEC) will enter into written buy/sell agreements with equipment sellers or will enter written agreements to broker equipment for commission. In some cases where a commission agreement is signed, IEC will agree to send inquiries directly from potential buyers to the seller. In other cases, IEC will protect the buyer until the seller agrees to a sales agreement with IEC in order that the equipment be resold to the buyer. In any case a registered Seller agrees to protect Industrial Exchange Corporation’s position and to only sell the equipment directly to buyers who are brought to the seller by IEC through a written agreement as described.
This agreement is between Industrial Exchange Corporation (IEC) and sellers (seller) registering to sell equipment listed on any of IEC’s Websites. This is a non-exclusive agreement and sellers may offer and sell equipment independently even if the equipment is listed on an IEC’s website.. However, the Seller agrees that this agreement governs sales that have originated with an inquiry received through a website of Industrial Exchange Corporation.
IEC operates and maintains a number of industry specific and general industrial websites as forums to link buyers with sellers of used and surplus industrial equipment. Registered users of IEC Websites may be approved as registered sellers. Sellers on these websites are approved or disapproved at the sole discretion of Industrial Exchange Corporation using information that may include: declaration or evidence that the seller has the right to sell or advertise certain equipment and conducts business in a manner that is consistent with the rights or best interest of IEC and/or its registered users. IEC reserves right to refuse to list equipment as it chooses and may include or not include equipment listed by any seller on its website as it sees appropriate.
Once the seller has agreed to the IEC user agreement and this sellers agreement and has been approved he may list equipment on the website that is appropriate. The registered seller agrees to pay IEC a commission based on the sales price on sales of equipment that originate with an inquiry from an IEC website or reach a written alternative agreement with IEC. This commission will be calculated using the sales price the seller receives as follows:
The commission will be equal to:
- 8% of the portion of the sales price less than $100,000 plus,
- 7% of any portion of the sales price $100,000 - $300,000 plus,
- 5% of any portion of the sales price exceeding $300,000.
In lieu of paying the commission as above the seller may enter into an agreement to sell the equipment to Industrial Exchange Corporation for resale to the buyer or an agreement to require the buyer to pay a “Buyer’s Premium” equal to the amount of commission due directly to IEC prior to release of the equipment sold.
Upon notification of receipt of an inquiry through an Industrial Exchange website the seller agrees to supply a quote to IEC for the listed equipment which includes the commission or specifies the buyer’s premium. The commission or buyer’s premium due is calculated against the final sales price. Extra costs such as dismantling, crating, loading or shipping are not subject to commission.
Sellers agree to notify IEC if equipment they list is sold such that the equipment may be removed from the website. If the sale has originated from an inquiry from an ISW, the seller agrees to notify IEC promptly of sales and to pay commissions within 30 days of receiving payment from the buyer. The seller agrees to convey information regarding listed equipment that is to the best of his knowledge, and declare and/or demonstrate that he either owns the equipment or has permission from the owner to place it on the ISW. He agrees to treat referred buyers with respect and according to best business practice.
Both parties agree that no joint venture or agent relationship exists between the parties and that IEC is acting only as a lead qualifier and earns commissions or buyer’s premium as payment for this service. IEC agrees to accurately describe the lead and the qualification that has occurred. If the seller deems that insufficient information is available to enter negotiations, IEC will use reasonable efforts to obtain more information about the buyer. Notwithstanding the foregoing, IEC is only responsible for securing such information about the buyer as is required to be provided by the buyer during the registration of the buyer as a registered user of the IEC websites.