Independent Contractor Agreement — The Pocono Plumber

This Independent Contractor Agreement ("Agreement") is between The Pocono Plumber ("Company") and the undersigned contractor ("Contractor"). By completing this verification and signing below, Contractor agrees to all terms herein.

1. Definitions

"Gross Job Revenue" means all amounts paid by a customer for a referred job, excluding only applicable sales tax and permit fees paid directly to a government authority. Labor, materials, diagnostic fees, emergency fees, and any other charges collected from the customer are included in Gross Job Revenue.

"Company Customer" means any individual or property owner who was introduced to Contractor through Company's referral process, including customers who later contact Contractor directly without going through Company.

2. Independent Contractor Status

Contractor is an independent contractor — not an employee, agent, partner, or joint venturer of Company. Contractor is solely responsible for their own federal and state taxes, self-employment taxes, benefits, equipment, vehicle, fuel, transportation, and any workers' compensation required for their employees. Company will issue a Form 1099 where required by law.

3. Scope of Work

Company will refer plumbing service requests from customers located in the Pocono Mountain region to Contractor. Contractor may accept or decline any individual referral at their discretion. Accepting a referral obligates Contractor to fulfill the job professionally, timely, and in compliance with all applicable laws, codes, and permit requirements.

Inspection-only visits. When Contractor performs an assessment visit and the customer declines to proceed with any work after receiving the estimate, no referral fee is owed to Company for that visit. Contractor must notify Company of the customer's decision within 24 hours of the assessment so Company may process any applicable refund to the customer.

4. Revenue Split, Invoicing, and Payment

Quote submission. Before commencing any non-emergency work on a referred job, Contractor must submit a written estimate to Company through Company's job management system. The estimate must include a description of the proposed work, materials, and the total price quoted to the customer. Submission and Company's receipt of the estimate before work begins is a condition of this Agreement. For emergency jobs, the estimate must be submitted within 4 hours of arriving on site.

For each completed job referred by Company, Gross Job Revenue shall be split: 60% to Contractor, 40% to Company. Contractor must submit a copy of the signed customer estimate and final invoice to Company within 48 hours of issuance. Company will remit Contractor's share within 7 business days of receiving and verifying the invoice. Company reserves the right to withhold payment pending resolution of any customer dispute or warranty claim arising from Contractor's work.

Payment independence. Contractor's obligation to remit Company's 40% share is not contingent on customer satisfaction, the customer's payment status, or any disagreement between Contractor and the customer regarding the scope or quality of work. Company's share is calculated on the full amount invoiced to the customer, not the amount ultimately collected. Contractor bears sole responsibility for collecting payment from customers and resolving any customer complaints.

Late remittance. If Contractor fails to remit Company's share within 48 hours of invoice submission, a late fee of 1.5% of the outstanding balance per week shall accrue until paid in full, or the maximum rate permitted by Pennsylvania law, whichever is less. Continued failure to remit after 7 days constitutes grounds for immediate termination under Section 11.

Dispute window. If Contractor disputes the Gross Job Revenue amount for a given job, Contractor must notify Company in writing within 5 business days of job completion. Failure to raise an objection within that window constitutes acceptance of the invoiced amount as final. Company will review disputed amounts in good faith and respond in writing within 7 business days. Undisputed amounts remain due during any review period.

Anti-circumvention. Contractor shall not accept payment from any Company Customer in any form — including cash, check, Venmo, Zelle, or any other method — without reporting the full transaction amount to Company. Contractor owes Company its 40% share of any Gross Job Revenue from a Company Customer, whether or not the job was formally referred through Company's system. Failure to accurately report any job revenue constitutes grounds for immediate termination and entitles Company to recover its percentage of undisclosed revenue plus reasonable attorneys' fees.

Audit rights. Company may request supporting documentation — including customer confirmation, photographs, permits, or materials receipts — to verify any invoice. Contractor agrees to provide such documentation within 5 business days of request. Company may also contact customers directly to confirm job amounts and satisfaction.

Customer non-payment. If a customer refuses to pay or disputes payment after work is completed, Contractor must notify Company in writing within 48 hours of the dispute arising. Contractor is solely responsible for pursuing collection from the customer, including through small claims court if necessary. Company's 40% share remains due regardless of the customer's payment status per the Payment Independence clause above. Company will flag non-paying customers in its internal system and may share that information with its verified contractor network to protect future contractors from the same risk.

Chargeback and refund offset. If Company refunds or compensates a customer due to Contractor's negligence, misrepresentation, code violation, incomplete work, or failure to respond to a warranty callback, Company may offset the full refund amount against future payments owed to Contractor. If no future payments are available, Contractor shall reimburse Company within 14 days of written notice.

5. Licensing and Insurance Requirements

Contractor warrants and represents that, at all times during this Agreement, Contractor shall maintain all of the following in good standing:

1. A valid Pennsylvania Home Improvement Contractor (HICPA) registration, as required by the Pennsylvania Home Improvement Consumer Protection Act.
2. General Liability Insurance (GLI) with minimum coverage of $1,000,000 per occurrence / $2,000,000 aggregate. The certificate of insurance must name The Pocono Plumber as an additional insured.
3. All licenses, registrations, certifications, and permits required by the jurisdictions in which Contractor performs work. Contractor is solely responsible for determining and maintaining all applicable local, municipal, county, and state requirements.
4. Workers' Compensation Insurance covering all employees, or a signed waiver if operating as a sole proprietor with no employees, as permitted by Pennsylvania law.

Contractor must notify Company in writing within 48 hours if any of the above coverage lapses, is cancelled, is modified, or expires. Company reserves the right to immediately suspend referrals — without notice — upon discovery of any lapse. Company may verify Contractor's insurance directly with the insurer at any time and may request updated certificates of insurance on demand. Contractor accepts full responsibility for any claims arising from work performed during a coverage lapse.

Homeowner contract compliance. For each job referred by Company, Contractor is solely responsible for executing a written contract directly with the homeowner that complies in full with the Pennsylvania Home Improvement Consumer Protection Act, 73 P.S. § 517.7, including all required disclosures, the three-business-day right of rescission notice, and the deposit limitations under § 517.9. Contractor shall provide Company with a copy of the signed homeowner contract upon request within 5 business days. Failure to maintain HICPA-compliant homeowner contracts is grounds for immediate suspension of referrals and termination under Section 11. Company makes no representations to homeowners regarding the terms of Contractor's homeowner contracts and bears no liability for Contractor's failure to comply with HICPA.

6. Liability and Indemnification

Contractor is solely and fully liable for all work performed on referred jobs, including but not limited to: property damage, personal injury, incomplete work, code violations, and warranty callbacks. Company is not an employer, co-contractor, or guarantor of Contractor's work.

Contractor agrees to indemnify, defend, and hold harmless The Pocono Plumber, its owners, agents, and affiliates from any and all claims, losses, liabilities, damages, costs, and attorneys' fees arising from: (a) Contractor's performance or failure to perform; (b) Contractor's lapse in licensing or insurance; (c) any negligent, reckless, or intentional acts by Contractor or Contractor's employees.

7. Work Standards and Customer Relations

Contractor agrees to: (a) respond to accepted referrals promptly and arrive within the agreed timeframe; (b) treat all customers professionally and respectfully; (c) provide a written estimate and obtain customer approval before commencing any non-emergency work; (d) complete work in a clean, professional manner and comply with all applicable codes and permit requirements; (e) not accept payment in any form that circumvents the agreed revenue split; (f) maintain before-and-after photographs of all work performed and provide them to Company upon request; (g) document all pre-existing conditions visible at the job site before commencing any work, including photographs and a written description submitted through Company's job management system prior to starting; (h) if additional pre-existing conditions are discovered mid-job, stop work immediately, document them with photographs and written description, and notify Company before proceeding; (i) obtain written customer approval — by signed change order submitted through Company's system — before performing any work outside the scope of the original estimate; verbal scope modifications are not recognized under this Agreement and revenue from undocumented scope changes is not included in Gross Job Revenue calculations.

Pre-existing condition liability. Any damage, defect, or condition that Contractor did not document as pre-existing before commencing work is presumed to have arisen from Contractor's work. This presumption may only be rebutted by clear and convincing evidence. Contractor's failure to document pre-existing conditions is not a defense to a customer claim and shall be treated as contractor fault for purposes of Section 4 chargebacks and Section 6 indemnification.

8. Customer Ownership

All customers referred to Contractor by Company are and remain Company Customers, as defined in Section 1. This applies regardless of whether the customer subsequently contacts Contractor directly, provides Contractor with their personal contact information, or initiates future jobs without going through Company's platform. Contractor acknowledges that Company's customer relationships are a primary business asset and agrees that any job performed for a Company Customer — at any time, through any channel — is subject to the revenue split and reporting requirements in Section 4.

9. Non-Solicitation

During the term of this Agreement and for 12 months following termination, Contractor shall not directly solicit plumbing work from any Company Customer, nor encourage any Company Customer to contact Contractor outside of Company's referral process. Violation of this clause entitles Company to liquidated damages equal to the full invoice amount of any diverted job(s), plus reasonable attorneys' fees.

10. Confidentiality

Contractor shall keep confidential all customer information, pricing structures, internal processes, and business terms of Company. Contractor shall not disclose such information to any third party without Company's prior written consent.

11. Term and Termination

This Agreement begins upon Company's written approval of Contractor's verification and continues until terminated. Either party may terminate with 7 days written notice. Company may terminate immediately and without notice for cause, including: (a) failure to maintain required licensing or insurance; (b) customer fraud or misconduct; (c) repeated no-shows or unprofessional conduct; (d) violation of the non-solicitation or customer ownership provisions; (e) failure to report job revenue; (f) submission of false or fraudulent verification documents.

12. Dispute Resolution

The parties agree to first attempt to resolve any dispute through good-faith negotiation. If unresolved after 30 days, disputes shall be submitted to binding arbitration under the rules of the American Arbitration Association, conducted in Monroe County, Pennsylvania. This Agreement is governed by the laws of the Commonwealth of Pennsylvania.

13. Entire Agreement

This Agreement constitutes the entire agreement between the parties and supersedes all prior discussions, representations, or understandings. Amendments must be in writing and signed by both parties.