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Commission Based Employment Contract
"I need a Commission Based Employment Contract for hiring a senior sales representative in the software industry, with a 70/30 commission split and quarterly performance targets, starting March 1, 2025, that includes non-compete provisions for the Northeast territory."
1. Parties: Identification of employer and employee with full legal names and addresses
2. Background: Context of the employment relationship and purpose of the agreement
3. Definitions: Key terms used in the agreement, especially commission-related terminology
4. Commission Structure: Detailed explanation of commission rates, calculations, and earning conditions
5. Payment Terms: Timing and method of commission payments, including tax withholding requirements
6. Employment Status: Clarification of employment relationship and classification under relevant laws
7. Term and Termination: Duration of agreement and conditions for termination, including final commission payments
8. Governing Law: Specification of applicable state and federal laws governing the agreement
1. Benefits Package: Details of additional benefits beyond commission structure, including health insurance, retirement plans, and other perks
2. Non-Compete Clause: Restrictions on post-employment competition and protection of business interests
3. Draw Against Commission: Terms for advanced payments against future commissions and minimum earnings guarantee
4. Confidentiality: Protection of company's confidential information and trade secrets
5. Performance Metrics: Specific performance standards and expectations beyond commission targets
1. Schedule A - Commission Rate Schedule: Detailed breakdown of commission rates, tiers, and qualification criteria
2. Schedule B - Territory Assignment: Definition of geographical or customer territory assignments
3. Schedule C - Sales Targets: Specific sales goals and related commission structures by period
4. Appendix 1 - Commission Calculation Examples: Sample calculations demonstrating how commissions will be computed in various scenarios
5. Appendix 2 - Required State Notices: State-specific notices and disclosures required by law
Authors
Commission
Commission Period
Commission Rate
Earnings
Effective Date
Eligible Sales
Employment Term
Net Sales
Payment Date
Performance Targets
Qualifying Revenue
Sales Territory
Services
Target Market
Commission Threshold
Draw
Clawback Period
Booking Date
Earned Commission
Payable Commission
Client
Customer
Products
Sales Cycle
Base Salary
Confidential Information
Intellectual Property
Working Hours
Termination Date
Payment Terms
Territory Assignment
Performance Targets
Duties and Responsibilities
Work Schedule
Employment Status
Term and Duration
Termination
Commission Calculation
Draw Against Commission
Clawback Provisions
Reporting Requirements
Record Keeping
Expenses
Non-Competition
Non-Solicitation
Confidentiality
Intellectual Property
Benefits
Vacation and Leave
Training and Support
Dispute Resolution
Governing Law
Amendment and Modification
Severability
Entire Agreement
Assignment
Compliance with Laws
Notices
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