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Enter the full legal name of this party exactly as it appears on their ID or business registration.
Enter the full legal name of this party exactly as it appears on their ID or business registration.
A Sales Commission Agreement is the binding contract between a business and a sales representative — whether an employee or independent contractor — that defines the commission structure, territory, product or service lines covered, payment timing (when commissions are earned and when paid), chargeback provisions for returned orders or uncollected receivables, and post-termination commission rights. The single most litigated employment document after the employment agreement itself. Ambiguous commission plans cost companies millions in litigation annually. Fill out this free sales commission agreement template online, e-sign it digitally, and download a legally valid PDF. no account or lawyer needed. Sections: Parties, Commission Terms.
This Sales Commission Agreement (the "Agreement") is entered into as of ______________ by and between ______________, located at ______________ (the "Company"), and ______________, located at ______________ (the "Representative"), who shall serve as a ______________.
Company appoints Representative as a non-exclusive sales representative for the Company's products and services described herein, for the following territory: ______________ (the "Territory"). Representative shall not solicit orders outside the Territory without the Company's prior written consent.
Representative is authorized to solicit orders for the following products and/or services: ______________ (collectively, the "Products"). Company reserves the right to modify, discontinue, or add to the Products upon thirty (30) days' written notice to Representative.
Company shall pay Representative a commission of 10% of the Net Sale Price of all Products sold by Representative and accepted by Company. "Net Sale Price" means the invoice price actually collected, less returns, allowances, freight, taxes, and any discounts approved by Company.
No draw against commissions shall be paid. Representative shall be compensated solely by earned commissions.
Commissions are earned when: (a) a customer order is accepted in writing by Company; (b) the Products are delivered to the customer; and (c) ______________. No commission shall be earned on orders that are cancelled, returned, or for which payment is not received.
Earned commissions shall be calculated and paid on the following schedule: ______________. Company shall provide Representative with a written commission statement with each payment identifying all transactions included, the applicable commission rate, and the basis for any adjustments.
______________ In the event of a chargeback, the amount previously paid to Representative with respect to the affected transaction shall be deducted from the next commission payment. If insufficient future commissions are available to cover the chargeback within 90 days of termination, Representative shall repay the chargeback amount within 30 days of written demand.
Representative shall be responsible for all of Representative's own expenses, including travel, entertainment, home office, telephone, and similar costs, unless Company expressly pre-approves reimbursement in writing. Any approved expenses shall be submitted within 30 days of incurrence with receipts.
Representative shall use Company's trademarks, logos, and marketing materials only in the form provided and approved by Company. Representative acknowledges that all customer lists, pricing, trade secrets, and business information of Company constitute Confidential Information and shall not be disclosed to any third party during or after this Agreement. All Company materials shall be returned upon termination.
Representative is an employee of Company and shall be subject to Company's employment policies and procedures. Company shall withhold applicable federal, state, and local taxes from commission payments.
During the term of this Agreement and for one (1) year thereafter, Representative shall not directly or indirectly solicit or service, for any competitor of Company, any customer of Company with whom Representative had contact during the preceding 24 months.
Upon termination of this Agreement for any reason, Representative shall be entitled to commissions on orders that: (a) were submitted by Representative prior to the termination date, (b) are accepted by Company within 30 days after termination, and (c) result in actual payment received by Company. No commissions shall be payable on orders submitted after the termination date, even if from customers developed by Representative.
This Agreement shall commence on ______________ and continue until terminated by either party upon thirty (30) days' written notice. Company may terminate immediately for cause, including but not limited to: misrepresentation to customers, breach of confidentiality, or violation of applicable law.
This Agreement shall be governed by and construed in accordance with the laws of the State of ______________, without regard to its conflict-of-laws principles.