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Commission Draw Agreement
"I need a Commission Draw Agreement for our software sales team in Ontario, Canada, with a monthly draw of $4,000 against a 10% commission rate on software license sales, including clawback provisions if the draw exceeds earned commissions."
1. Parties: Identification of the employer and employee/contractor parties to the agreement
2. Background: Context of the agreement and relationship between the parties
3. Definitions: Key terms used throughout the agreement including 'Draw', 'Commission', 'Sales', 'Territory', etc.
4. Draw Amount and Payment: Specification of the periodic draw amount and payment schedule
5. Commission Structure: Detailed explanation of commission rates, calculation methods, and earning criteria
6. Draw-Commission Reconciliation: Process and frequency of reconciling draws against earned commissions
7. Repayment Terms: Terms for repayment of draws that exceed earned commissions
8. Sales Reporting: Requirements for reporting sales and tracking commission earnings
9. Payment Schedule: Timing of commission payments and draw adjustments
10. Term and Termination: Duration of the agreement and conditions for termination
11. Post-Termination Obligations: Obligations regarding final reconciliation and repayment of outstanding draws
12. General Provisions: Standard legal provisions including governing law, amendments, and notices
1. Performance Targets: Specific sales targets or quotas when performance metrics are tied to the commission structure
2. Additional Bonus Structure: Details of any additional bonus programs or incentives beyond standard commission
3. Territory Definitions: When specific geographic or customer territories are assigned
4. Non-Solicitation: Restrictions on soliciting customers or employees, if applicable
5. International Sales: Special provisions for international sales including currency conversion and territorial rights
6. Training and Support: When specific training or support obligations are part of the agreement
7. Expense Reimbursement: If separate expense reimbursement terms are included
8. Intellectual Property: When dealing with proprietary sales materials or methods
1. Schedule A - Commission Rates: Detailed breakdown of commission rates by product, service, or customer type
2. Schedule B - Draw Calculation: Formula and examples of draw calculations and reconciliation
3. Schedule C - Sales Territory: Detailed description of assigned sales territory or customer accounts
4. Schedule D - Product List: List of products or services covered by the commission agreement
5. Schedule E - Performance Metrics: Detailed performance targets and measurement criteria
6. Appendix 1 - Commission Calculator: Spreadsheet or formula for calculating commissions
7. Appendix 2 - Reporting Templates: Standard forms for sales and commission reporting
Authors
Real Estate
Software and Technology
Insurance
Financial Services
Pharmaceutical
Manufacturing
Advertising and Media
Telecommunications
Automotive
Industrial Equipment
Professional Services
Retail
Sales
Business Development
Account Management
Revenue Operations
Finance
Human Resources
Legal
Compensation
Payroll
Sales Representative
Account Executive
Business Development Manager
Sales Manager
Territory Manager
Regional Sales Director
Commission-Based Consultant
Sales Agent
Channel Sales Manager
Inside Sales Representative
Outside Sales Representative
Sales Development Representative
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