Salesperson Agreement Commission Only - Business Power Tools

[Pages:11]Salesperson Agreement

Commission Only

Before you hire any sales representative, you will be glad you have this agreement in place.

A Sales Representative Agreement is an agreement used by a business to appoint its sales representatives. The agreement sets forth the status of the sales representative as either exclusive or non-exclusive, designates the representative's sales territory, and indicates the products s/he is authorized to sell.

Being sued by a former employee who felt he should be paid for sales 10 years out into the future inspired this contract. It's probably our best one... we built it with a vengeance. It's probably worth over $100,000, but it's only a few pages, and you will be very happy you have this in place with every salesperson you hire, either as a contractor on straight commission or as an employee with a base salary.

The first part of the Memorandum should be completed and distributed to the other party along with a copy of the Salesperson Commission Only Agreement.

Date:

[Month, Day, Year]

To:

[Name of Salesperson]

From:

[Owner/Founder] [Company]

Subject:

Salesperson Commission Only Agreement

________________________________________________________________________

Attached is a "Salesperson Commission Only" Agreement in order to set forth all of the terms and conditions, including commission rates, for your employment as a commission-based sales representative for us.

I believe that it embodies everything we discussed. Please read the agreement carefully. We recommend that you also have it reviewed by your own qualified legal counsel. Time is of the essence. Please sign and return it to me asap.

Thank you very much! Click to Visit Web Page

____________________________________________________________________________________________ 1

From JIAN

NOTICE: We wish we could provide an agreement that was tailored exactly to your business. While this is not always possible, we feel that we've come very close and that this document provides you with the headstart that you need to get your deal moving. Nevertheless, we must make this disclaimer:

Do Not Use This Agreement 'As-Is.' This Agreement Is Not Legal Advice. Read it Thoroughly and Make All Appropriate Changes to Fit Your Requirements. You Should Have this Agreement Reviewed and Approved by a Qualified Attorney at Law Before Using It. JIAN Accepts No Liability for the Effectiveness of This Document For Your Purposes.

Free Access to Attorneys, Accountants & Consultants in Your Area

We're building a network of business experts who are eager to help you when you need it. They can review your work, make suggestions, handle unique situations and introduce you to influential people. On our website you can search by expertise and location, then e-mail or jump straight to their website. Although they are professionals and charge for their services, most offer an initial consultation free of charge. They're in your area and you can contact them directly.

Please visit our website under Expert Referral Network.

Ongoing Update Service Keeps You Current Things change, laws change, the world changes... new ideas come along all the time. When you register, you can access our website to get updates and changes... like new and improved spreadsheets and documents. They can be downloaded directly to your computer.

Please visit our website under Updates. Remember to bookmark our website:

Editing Your Sample Contract

Since this entire agreement is formatted in Word, you can edit it like any other Word document. You can

jump from variable to variable by clicking the above

green arrows (JIAN Menu) which will take

you forward / backward and highlight the entire sample text identified within the "[ ]" brackets ? simply

edit / type-over with your information.

To make sure your have filled in all the variables, use Word's `FIND' function to locate any "[ ]" which may contain an unedited variable.

Click the

icon in the JIAN menu above to turn the expert comments on/off.

Upon completion, delete any unnecessary blank lines that remain.

You may format this document any way you like.

Delete this page.

____________________________________________________________________________________________ 2

Salesperson Agreement

Commission Only

This is a standard introductory paragraph that lists the parties to the Agreement and the date the Agreement is being entered into. You need to enter the date of the Agreement, the names of the parties, the specific type of organization, and their addresses.

Effective Date

[Date]

between a residing at

[Employee], ("Employee") [State] Resident, [Address]

and a located at

[Company Legal Name] ("[Company]" or "Employer") [State] [Corporation / Partnership / Sole Proprietorship / Resident) [Address] [City], [State] [Zip Code]

In consideration for the mutual promises, covenants, and Agreements made below, the parties, intending to be legally bound, agree as follows:

1. Term & Termination

Following are two Section 1.1's. Select the first one, if the employment is for a specific term. If the employment is "at will," then use the second one.

For the first insert, enter the period of employment. For second and third inserts enter the commencement date of the employment.

1.1 Term. The Employer hereby employs the Employee and the Employee hereby accepts employment with the Employer for a period of [Enter period of employment] beginning on [Month, Day, Year].

~ [Or] ~

Enter the commencement date of the employment.

1.1 Term. The Employer hereby employs the Employee and the Employee hereby accepts employment with the Employer beginning on [Month, Day, Year].

1.2 Termination

This next section lists a number of situations that cause the Agreement to terminate. You should add or delete from this list where appropriate.

1.2.1 Termination Events. Unless otherwise waived by the Employer, this Agreement terminates on the

____________________________________________________________________________________________ 3

occurrence of one or more of the following:

The Employer's business shuts down. The Employee dies. The Employee loses his legal capacity. The death of any partner in the business. The Employer's loss of its legal capacity to contract. The Employee's breach of duty. The Employee's habitual neglect of his / her employment duties. The Employee's continued incapacity to perform his / her duties. The willful or permanent breach of the Employee's obligations.

1.2.2 Effect on Compensation. The Employee will be entitled to the compensation earned prior to the date of termination. The Employee will be entitled to no compensation beyond the date of termination.

If the Employee's employment terminates, he / she must submit any claims he / she has for commissions within the period of time (in brackets) following the termination date.

1.2.3 Effect on Commissions. All claims for commissions are waived by the Employee if not made within [xx] days of the date of the termination.

2. Employee's Obligations

For the first insert in Section 2.1, state the goods or type of goods the Employee will be selling. For the second insert, state the type of buyers (for example, the general public or specific dealers).

2.1 Employment as Salesperson. The Employee will provide sales services for the Employer; the Employee will sell [Insert type of goods] (the "Merchandise") in the territory described below to [x] (Type of buyers).

In Section 2.2.1, state the specific territory where the Employee will be selling.

2.2 Territory 2.2.1 The Employee will provide sales services in [Enter territory] (the "Territory.") The Employee will not make any sales outside of the designated Territory.

2.2.2 In its sole discretion, the Employer may change the Territory at any time and in any manner.

In the next section, you will want to state whether this is a part time position, if so, make the appropriate changes.

2.3 Full Time & Energy. The Employee agrees to devote his / her full time and energy to the performance of his / her duties, subject to the Employer's direction and control, and the Employee will use his / her best efforts to sell the Merchandise in the Territory.

Section 2.4 prohibits the Employee from engaging in any activities that compete with the Employer's business.

2.4 Prohibition Against Competitive Activities. During the term of this contract the Employee shall not, in any capacity, participate in any business that competes in any manner with the Employer's business.

For the first insert in Section 2.5, state the reporting period. For the second insert, specify the nature of the information to be included in these reports. For example, the names and addresses of each customer and prospective customer that was called on, the specific time those calls were made, the quantity and description of all goods ordered, and any complaints.

____________________________________________________________________________________________ 4

2.5 Sales Reports. On the last working day of each [x] (Enter reporting period), the Employee shall complete and submit to the Employer a written report, on a form provided by the Employer, stating [x] (Enter information), and any other information or data that the Employer may request.

2.6 Rules & Regulations. The Employee shall strictly adhere to and obey all the rules and regulations now in effect or as subsequently modified relating to the conduct of the Employees.

2.7 Satisfactory Performance. The Employee's employment shall continue only as long as the services performed by the Employee are satisfactory to the Employer, in the Employer's sole and exclusive judgment.

3. Compensation

In the first insert in Section 3.1, indicate the percentage of net sales to be paid to the Employee. For the second insert, indicate whose sales the Employee receives commissions on, in other words, does the Employee only receive a commission on sales he makes, or also through other Employees, or the Employer.

3.1 Commissions. As compensation for the services performed pursuant to this Agreement, the Employee shall receive a commission of [x]% of the Net Sales (defined below) of Merchandise sold to the customers in the Territory by [x] (Indicate whose sales).

Make sure that this definition of Net Sales meets your needs.

3.2 Net Sales. Means the amount of gross sales less any returns and allowances attributable to those gross sales.

The commissions do not accrue until the payment is actually received.

3.3 Accrual of Commissions. Commissions are earned when payment for the Merchandise is actually received by the Employer.

4. Expenses 4.1 Travel, Entertainment, & Other Expenses. It is recognized and agreed by the parties to this Agreement that in connection with the services to be performed for the Employer, the Employee will be obliged to expend money for travel, entertainment of customers, gifts, and similar business expenses. The Employee is authorized to incur reasonable business expenses for promoting the business of the Employer.

Following are two Section 4.2's. Choose the one that fits your requirements best. If the Employee will be reimbursed on a regular basis as expenses are incurred, then select the first one. If the Employee will be given a lump sum on a regular basis, then select the second one.

4.2 Reimbursement. The Employer shall reimburse the Employee from time to time for all business expenses incurred by the Employee, provided that the Employee presents Adequate Documentation (defined below) to the Employer.

~ [Or] ~

For the first insert, indicate the monthly lump sum amount. For the second insert, indicate when the money will be paid, for example, the last day of the month.

4.2 Reimbursement. In addition to commissions paid and regardless of actual expenses incurred, the Employer will pay the Employee a set sum of $[x] per month to reimburse the Employee for its business expenses. This additional amount shall be paid $[x]. The Employer will only be liable to the Employee for the repayment of any business expenses incurred by the Employee in any particular month as provided for in this section. The Employee shall present to the Employer Adequate Documentation for all business expenses.

____________________________________________________________________________________________ 5

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download