Sales Commission Agreement Template

Created October 18, 2026 · Updated October 18, 2026

SALES COMMISSION AGREEMENT

This Sales Commission Agreement (hereinafter referred to as the "Agreement") is made and entered into as of this [Effective Date] (the "Effective Date"), by and between [Company Legal Name], a [State of Incorporation] [entity type] with its principal place of business located at [Company Address] (hereinafter referred to as the "Company"), and [Salesperson Full Legal Name], an individual residing at [Salesperson Address] (hereinafter referred to as the "Salesperson"). The Company and the Salesperson may hereinafter be referred to individually as a "Party" and collectively as the "Parties."

WHEREAS, the Company is engaged in the business of developing, marketing, and selling the Covered Products (as hereinafter defined) within the United States;

WHEREAS, the Company desires to employ the Salesperson in the capacity of a commissioned sales employee for the purpose of promoting, soliciting orders for, and effecting sales of the Covered Products within the Territory (as hereinafter defined);

WHEREAS, the Salesperson possesses the requisite skill, experience, and willingness to perform such sales services and desires to accept such employment upon the terms and conditions hereinafter set forth; and

WHEREAS, the Parties desire to reduce to writing the terms governing the computation, accrual, payment, and administration of sales commissions payable to the Salesperson, together with the ancillary rights and obligations of each Party.

NOW, THEREFORE, in consideration of the mutual covenants, promises, and agreements hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, do hereby covenant and agree as follows:

  1. Definitions and Interpretation

    1. For the purposes of this Agreement, the following capitalized terms shall have the meanings ascribed to them in this Section, whether used in the singular or plural, and such definitions shall apply uniformly throughout the Agreement unless the context clearly otherwise requires.

    2. "Covered Products" shall mean those goods, services, software, subscriptions, licenses, or other offerings of the Company that are expressly identified in Section 3 of this Agreement, together with such additions, deletions, modifications, or substitutions thereto as the Company may, from time to time, designate in writing in accordance with the terms hereof.

    3. "Customer" shall mean any natural person, corporation, partnership, limited liability company, governmental authority, or other legal entity that executes a binding purchase order, subscription agreement, master services agreement, or other written contract with the Company for the purchase or licensure of Covered Products as a direct and proximate result of the Salesperson's bona fide sales efforts.

    4. "Net Sales Price" shall mean the actual gross amount invoiced by, and received in collected funds by, the Company from a Customer for a sale of Covered Products, less, without duplication, applicable taxes, duties, shipping and handling charges, freight, insurance, discounts actually granted, rebates, credits, returns, allowances, refunds, chargebacks, and bad debt write-offs attributable to such sale.

    5. "Qualifying Sale" shall mean a sale of Covered Products within the Territory that (i) was originated, procured, or substantially advanced by the Salesperson in accordance with the Company's sales procedures, (ii) has been formally accepted and booked by the Company, and (iii) has resulted in actual, final, and non-refundable payment to the Company by the Customer in collected funds.

    6. "Territory" shall mean the geographic area within which the Salesperson is authorized to solicit sales of Covered Products on behalf of the Company, as more particularly described in Section 3 hereof.

    7. The headings and captions contained herein are for convenience of reference only and shall not be deemed to limit, define, or affect the construction or interpretation of any provision of this Agreement. Words of any gender shall include each other gender; words using the singular shall include the plural, and vice versa; and the words "include," "includes," and "including" shall be deemed to be followed by the phrase "without limitation."

    8. Any reference to a statute, regulation, or governmental authority shall be construed as a reference to such statute, regulation, or authority as amended, modified, re-enacted, or replaced from time to time. References to Sections and clauses are references to the Sections and clauses of this Agreement unless otherwise specified.

  2. Appointment and Scope of Employment

    1. The Company hereby employs the Salesperson, and the Salesperson hereby accepts such employment, as a commissioned sales employee of the Company, upon and subject to the terms, covenants, and conditions set forth in this Agreement, effective as of the Effective Date and continuing until terminated in accordance with Section 12 hereof.

    2. The Salesperson shall at all times during the term of this Agreement be an employee of the Company and shall not be deemed an independent contractor, partner, joint venturer, agent (except to the limited extent expressly authorized herein), or franchisee of the Company. The employment of the Salesperson shall be on an at-will basis, subject to the express provisions of Section 12 hereof.

    3. The Salesperson shall report directly to [Reporting Supervisor Title] or such other person as the Company may designate in writing from time to time, and shall perform such sales, business development, and related duties as are customarily performed by sales employees of comparable rank in the Company's industry, together with such additional duties as may be lawfully and reasonably assigned.

    4. The Salesperson shall devote his or her full business time, attention, skill, and best efforts to the diligent and faithful performance of the duties assigned hereunder and shall not, during the term of this Agreement, engage in any other business, employment, consultancy, or occupation, whether or not for compensation, that competes with the Company or materially interferes with the performance of the Salesperson's obligations hereunder, without the prior written consent of the Company.

    5. The Salesperson acknowledges that this Agreement constitutes the exclusive statement of the commission arrangement between the Parties and supersedes any prior oral or written understanding relating to the subject matter hereof, including, without limitation, any commission schedule, incentive plan, or offer letter previously provided to the Salesperson.

    6. In addition to the commissions payable under this Agreement, the Salesperson shall be entitled to such base salary or hourly wage (if any), employee benefits, paid time off, and other compensation as are set forth in a separate offer letter or employment communication between the Parties, provided that nothing in such separate documentation shall modify the commission terms contained herein.

    7. Nothing contained in this Agreement shall be construed to confer upon the Salesperson any right or authority to bind, obligate, or create liability for the Company except with respect to the acceptance of purchase orders in the ordinary course within the limits of written authority granted by the Company from time to time.

  3. Territory and Covered Products

    1. The Territory within which the Salesperson is authorized to solicit sales of Covered Products shall consist of [description of geographic area, states, regions, accounts, or named verticals], subject to such additions, reductions, reassignments, or realignments as the Company may make from time to time in its reasonable business discretion upon written notice to the Salesperson.

    2. The Covered Products to which this Agreement applies shall consist of the following goods and services offered by the Company: [description of product lines, SKUs, service offerings, or subscription tiers]. The Company reserves the right, in its reasonable discretion, to add, discontinue, modify, reprice, or substitute Covered Products from time to time upon written notice to the Salesperson, and such changes shall apply prospectively to sales not yet booked as of the effective date of the change.

    3. The Salesperson acknowledges that the designation of the Territory does not confer upon the Salesperson any exclusive right to sell within such Territory, and the Company reserves the right to appoint other sales personnel, distributors, resellers, agents, or representatives within the Territory, or to make direct sales to Customers within the Territory, subject only to the Company's duty to administer commission crediting in good faith.

    4. Certain Customers or categories of Customers may be designated by the Company, from time to time, as "House Accounts," "Strategic Accounts," or "National Accounts," with respect to which the Salesperson shall have no commission entitlement or a modified commission entitlement, provided that any such designation shall be made in writing in advance of the Salesperson's expenditure of material sales effort upon the account in question.

    5. The Salesperson shall not knowingly solicit, market, or sell Covered Products outside the Territory or to Customers assigned to other sales personnel without the prior written consent of the Company. Any sales inadvertently made outside the Territory shall be credited in accordance with the Company's standard sales crediting policies as in effect from time to time.

    6. In the event that a sale involves efforts of more than one sales employee or involves a Customer with locations both inside and outside the Territory, the Company shall equitably allocate the commission credit among the participating sales personnel in accordance with its split-credit policies, applying such policies in a consistent and non-discriminatory manner.

    7. Any dispute arising from the interpretation of the Territory, the designation of Covered Products, or the assignment of accounts shall be addressed in accordance with the dispute resolution procedures set forth in Section 11 and Section 17 hereof.

  4. Duties and Obligations of the Salesperson

    1. The Salesperson shall faithfully, diligently, and competently perform the sales duties assigned by the Company, including, without limitation, prospecting for new Customers, qualifying leads, conducting sales presentations and demonstrations, negotiating pricing within authorized parameters, submitting written proposals, closing sales, and maintaining ongoing Customer relationships to facilitate repeat and expansion business.

    2. The Salesperson shall comply with all written policies, procedures, pricing schedules, sales methodologies, discount authorizations, approval workflows, and codes of conduct of the Company as the same may be issued, amended, or supplemented from time to time, and shall promptly acknowledge receipt of such policies upon request.

    3. The Salesperson shall timely and accurately record all sales activities, Customer communications, pipeline information, forecasts, and transactional data within the Company's customer relationship management system or such other sales reporting tool as the Company may designate, and shall furnish such reports as the Company may reasonably require.

    4. The Salesperson shall conduct all sales activities in a lawful, ethical, and professional manner, shall not make any misrepresentation concerning the Covered Products or the Company, shall not offer or accept any unlawful inducement or kickback, and shall comply with all applicable federal, state, and local laws and regulations, including, without limitation, those governing anti-corruption, data privacy, consumer protection, and fair trade practices.

    5. The Salesperson shall not quote prices, grant discounts, extend credit terms, make warranties, accept returns, or otherwise commit the Company to terms outside the standard price list and standard terms and conditions published by the Company, except with the prior written approval of a duly authorized officer of the Company.

    6. The Salesperson shall promptly remit to the Company any funds, instruments, or property received from or on behalf of any Customer, and shall not accept payment directly from any Customer unless expressly authorized in writing by the Company, in which case such funds shall be held in trust for the sole benefit of the Company.

    7. The Salesperson shall promptly notify the Company of any material complaint, claim, dispute, warranty issue, or expression of dissatisfaction received from any Customer or prospective Customer, and shall cooperate with the Company in the investigation and resolution thereof.

    8. The Salesperson shall bear his or her own ordinary daily expenses except for those travel, entertainment, and promotional expenses that have been pre-approved in writing by the Company in accordance with the Company's expense reimbursement policy in effect from time to time.

  5. Commission Rate and Calculation

    1. Subject to the terms and conditions set forth in this Agreement, the Company shall pay to the Salesperson a commission equal to [Commission Percentage]% ("Commission Rate") of the Net Sales Price of each Qualifying Sale of Covered Products made within the Territory during the term hereof.

    2. The Commission Rate shall be a flat percentage applied uniformly to all Qualifying Sales of Covered Products, without tiers, thresholds, accelerators, or decelerators, except as the Parties may hereafter agree in a written amendment duly executed by both Parties.

    3. For purposes of calculating commissions, the Net Sales Price shall be computed in United States Dollars and shall exclude (i) any and all federal, state, local, or foreign sales, use, excise, value added, or similar taxes; (ii) shipping, freight, handling, and insurance charges; (iii) duties, tariffs, and import or export fees; (iv) discounts, rebates, allowances, credits, and promotional concessions actually granted to the Customer; (v) amounts attributable to third-party pass-through goods or services; and (vi) amounts refunded, charged back, or written off as uncollectible.

    4. The Company reserves the right, in its reasonable discretion and upon not less than [Notice Period, e.g., 30] days' prior written notice to the Salesperson, to prospectively adjust the Commission Rate, the method of calculation, or the categorization of Covered Products; provided, however, that no such adjustment shall apply retroactively to any Qualifying Sale that has already been earned under Section 6 hereof prior to the effective date of such adjustment.

    5. In the event that the Company offers bundled products, mixed-margin product sets, or non-standard pricing, the Company shall allocate the commissionable Net Sales Price among the constituent elements of such transactions in a reasonable and consistent manner, applying its standard allocation methodology.

    6. Commissions shall be computed exclusive of any sales taxes or employer-side payroll taxes, which shall be the responsibility of the Party to which such taxes are legally allocated. All employee-side taxes and withholdings shall be withheld from commission payments in accordance with applicable law.

    7. The Company shall not be obligated to pay commissions on any transaction that is not a Qualifying Sale, including, without limitation, sales to House Accounts, sales to the Company's affiliates, sales outside the Territory not credited to the Salesperson under the Company's split policy, barter transactions, or transactions where no monetary consideration is actually received by the Company.

  6. Accrual and Earning of Commissions

    1. Notwithstanding any contrary custom or practice, a commission shall be deemed earned by the Salesperson only upon the occurrence of all of the following conditions: (i) the Customer has executed a binding written contract with the Company for the purchase of Covered Products; (ii) the Covered Products have been delivered, installed, provisioned, or otherwise made available to the Customer in accordance with the terms of such contract; (iii) the Customer has made actual payment in collected funds to the Company; and (iv) the applicable chargeback or refund period, if any, has expired without the Customer having exercised rights of return, cancellation, or refund.

    2. The Parties expressly agree that no commission shall be deemed earned, vested, or payable merely by reason of the booking of an order, the execution of a contract, the shipment of goods, the invoicing of a Customer, or the achievement of any sales quota or milestone, in the absence of actual receipt of payment by the Company.

    3. Where a Customer pays for Covered Products in installments or on a subscription basis, commissions shall accrue on each installment as and when such installment is actually received by the Company in collected funds, and the commission earned on each such installment shall be calculated by applying the Commission Rate to the Net Sales Price allocable to that installment.

    4. If payment is received by the Company in a form other than immediately available funds, such as a check, draft, or similar instrument, the commission shall not be deemed earned until such instrument has cleared and the funds have been irrevocably credited to the Company's account.

    5. If a Customer tenders payment in a currency other than United States Dollars, the Net Sales Price shall be converted to United States Dollars at the exchange rate used by the Company's bank on the date of receipt, and the commission shall be computed on the converted amount.

    6. Commissions on sales made jointly with other sales personnel shall accrue only to the extent of the Salesperson's allocated share as determined by the Company's split-credit policies in effect at the time of booking.

    7. Nothing in this Section shall be construed to vest in the Salesperson any entitlement to commissions in respect of sales efforts that do not ultimately culminate in a Qualifying Sale, and the Salesperson acknowledges that unsuccessful sales efforts shall be uncompensated beyond any applicable base salary.

  7. Payment Terms and Timing

    1. The Company shall pay all commissions earned by the Salesperson during a given calendar month on or before the [Payment Date, e.g., 15th] day of the calendar month immediately following the month in which the commissions were earned, subject to the Company's normal payroll cycle.

    2. All commission payments shall be made in United States Dollars by direct deposit, check, or such other method as the Company customarily uses to pay employee wages, and shall be subject to all applicable federal, state, and local tax withholdings and other lawful deductions.

    3. Each commission payment shall be accompanied by, or shall be followed within a reasonable time by, a commission statement conforming to the requirements of Section 10 hereof, setting forth the sales giving rise to the commission, the Net Sales Price of each such sale, the Commission Rate applied, and the gross and net commission payable.

    4. In the event that any portion of a commission is in dispute, the Company shall timely pay the undisputed portion in accordance with the ordinary payment schedule, and the disputed portion shall be addressed in accordance with Section 11 hereof.

    5. If a regularly scheduled payment date falls on a weekend or a bank holiday, payment shall be made on the next succeeding business day, and such delay shall not constitute a breach of this Agreement.

    6. The Company may offset against any commissions otherwise payable to the Salesperson any amounts owed by the Salesperson to the Company, including, without limitation, outstanding draws, chargebacks, overpayments, unreturned Company property (valued at reasonable replacement cost), and unreimbursed advances, to the fullest extent permitted by applicable law.

    7. Payment of commissions in accordance with the terms hereof shall constitute full and final satisfaction of the Company's obligation to compensate the Salesperson in respect of the sales to which such commissions relate.

  8. Draws Against Commission

    1. At the Company's sole discretion, the Company may, but shall not be obligated to, extend to the Salesperson a periodic non-interest-bearing advance against future earned commissions (a "Draw"), in such amount and upon such schedule as the Company may determine in writing from time to time.

    2. Each Draw shall constitute a recoverable advance against commissions and shall be recouped by the Company from commissions actually earned by the Salesperson in subsequent periods, until such time as the aggregate amount of Draws extended has been fully offset by earned commissions.

    3. If, upon any periodic reconciliation, the aggregate Draws extended to the Salesperson exceed the aggregate commissions earned, such excess shall carry forward as a negative balance and shall be recovered from future earned commissions, provided that the Salesperson shall not be entitled to receive any commission payment in any period until the negative balance has been fully recouped.

    4. Upon the termination of the Salesperson's employment for any reason, any unrecouped balance of Draws shall be reconciled against commissions then earned but unpaid, and any remaining unrecouped balance shall, to the extent permitted by applicable law, be deducted from the Salesperson's final wages or, failing that, shall be deemed a debt owed by the Salesperson to the Company, repayable upon demand.

    5. The characterization of a payment as a Draw must be made in writing at the time of the advance; absent such written designation, a payment shall not be deemed a Draw subject to recoupment.

    6. The Company may, from time to time and upon written notice, modify, suspend, or discontinue any Draw arrangement prospectively, provided that no such modification shall affect the Salesperson's right to earned and unpaid commissions.

    7. Notwithstanding the foregoing, the Company shall administer Draws and any related recoupment in a manner consistent with all applicable federal and state wage payment laws, including those governing permissible deductions from employee wages and minimum wage obligations.

  9. Chargebacks, Refunds, and Clawbacks

    1. If, following payment of a commission to the Salesperson, the underlying Qualifying Sale is reversed, canceled, rescinded, or refunded in whole or in part, or if the Customer initiates a chargeback through its payment card issuer or bank, or if any amount received by the Company in respect of such sale is subsequently returned, disgorged, or written off as uncollectible, then the Salesperson shall be subject to a full and corresponding clawback of the commission previously paid.

    2. The amount subject to clawback shall equal 100% of the commission previously paid in respect of the reversed, canceled, refunded, or uncollected portion of the sale, and shall be recoverable by the Company by means of offset against future commission payments, deduction from wages (to the extent permitted by applicable law), or direct repayment by the Salesperson upon written demand.

    3. Clawbacks shall apply regardless of the reason for the reversal, cancellation, refund, chargeback, or write-off, and regardless of whether the Salesperson was at fault with respect to the underlying circumstance, except that no clawback shall apply to the extent that the reversal results solely from the Company's own willful misconduct or material breach of its obligations to the Customer.

    4. The Company shall maintain reasonable records of all clawback events and shall provide the Salesperson with a written explanation of each clawback event, including the Customer involved, the sale affected, the amount recovered, and the reason for the recovery.

    5. For purposes of administering clawbacks, where a sale is only partially reversed, canceled, or refunded, the clawback shall be computed by applying the Commission Rate to the reversed, canceled, or refunded portion of the Net Sales Price.

    6. Clawbacks may be effected whether or not the Salesperson remains employed by the Company at the time the clawback event occurs, and the Salesperson's obligation to repay clawed-back commissions shall survive the termination of this Agreement.

    7. Nothing in this Section shall limit the Company's other rights and remedies in respect of commissions paid by mistake, in excess of amounts earned, or in reliance upon erroneous or fraudulent information submitted by the Salesperson.

  10. Books, Records, and Commission Statements

    1. The Company shall maintain complete, accurate, and up-to-date books and records of all sales giving rise to commission entitlements of the Salesperson, together with records of commission computations, payments, Draws, chargebacks, clawbacks, and reconciliations, for a period of not less than [Record Retention Period, e.g., three (3)] years following the end of the calendar year to which such records relate.

    2. With each commission payment, the Company shall furnish to the Salesperson a written commission statement in such form as the Company customarily uses, setting forth, at a minimum: (i) the Customer and sale(s) to which the statement relates; (ii) the Net Sales Price of each such sale; (iii) the Commission Rate applied; (iv) the gross commission computed; (v) any chargebacks, clawbacks, or recoupments applied; (vi) applicable withholdings and deductions; and (vii) the net amount payable.

    3. The Salesperson shall have the right, upon not less than [Notice Period, e.g., ten (10)] business days' prior written request, and not more frequently than once per calendar quarter, to inspect (either personally or through a qualified independent representative bound by appropriate confidentiality obligations) the books and records of the Company relating to the computation of commissions payable to the Salesperson.

    4. Such inspection shall take place during normal business hours at the Company's principal place of business, shall be conducted in a manner that does not unreasonably interfere with the Company's business operations, and shall be limited in scope to those records reasonably necessary to verify the accuracy of commission computations for a period not exceeding the preceding [Audit Lookback, e.g., twelve (12)] months.

    5. The costs of any such inspection shall be borne by the Salesperson, except that if the inspection reveals an underpayment of commissions in excess of [Audit Threshold, e.g., five percent (5%)] of the amounts properly due for the inspected period, the Company shall reimburse the reasonable, documented out-of-pocket costs of the inspection.

    6. The Salesperson shall likewise maintain accurate records of his or her sales activities, Customer communications, and submitted expense reports, and shall produce such records to the Company upon reasonable request.

    7. All information disclosed to the Salesperson or his or her representative in connection with any inspection shall constitute Confidential Information of the Company and shall be used solely for the purpose of verifying commission computations.

  11. Disputes Regarding Commission Calculations

    1. In the event that the Salesperson disputes, in good faith, the computation, allocation, accrual, or payment of any commission, the Salesperson shall deliver a written notice of dispute to the Company within [Dispute Notice Period, e.g., sixty (60)] days after receipt of the commission statement to which the dispute relates, failing which the commission statement shall be conclusively deemed accurate and binding upon the Salesperson, absent manifest error or fraud.

    2. The notice of dispute shall set forth, in reasonable detail, the specific sale(s) in question, the nature of the alleged error, the amount in controversy, and the computation or interpretation that the Salesperson contends to be correct, together with supporting documentation.

    3. Upon receipt of a timely notice of dispute, the Parties shall confer in good faith for a period of not less than [Negotiation Period, e.g., thirty (30)] days in an effort to resolve the dispute informally. During such period, the Company shall provide the Salesperson with reasonable access to the records relevant to the dispute.

    4. If the Parties are unable to resolve the dispute through good-faith negotiation within the aforementioned period, the dispute shall be escalated for formal resolution in accordance with Section 17 hereof.

    5. Pending resolution of a bona fide dispute, the Company shall continue to pay the undisputed portion of any commission in accordance with the ordinary payment schedule, and no interest, penalty, or additional compensation shall accrue in respect of the disputed portion unless and until the dispute is resolved in favor of the Salesperson.

    6. Any resolution of a commission dispute, whether by agreement of the Parties or by binding determination under Section 17, shall be final and binding, and the resulting payment or recoupment shall be effected within [Settlement Period, e.g., thirty (30)] days after such resolution.

    7. The pendency of a dispute hereunder shall not relieve either Party of its ongoing obligations under this Agreement, including the Salesperson's obligation to perform his or her sales duties.

  12. Term and Termination

    1. This Agreement shall commence on the Effective Date and shall continue in full force and effect until terminated in accordance with this Section 12.

    2. Either Party may terminate this Agreement and the Salesperson's employment, at any time and for any reason or no reason, upon not less than [Notice Period, e.g., fourteen (14)] days' prior written notice to the other Party, consistent with the at-will nature of the Salesperson's employment.

    3. The Company may terminate this Agreement and the Salesperson's employment immediately, without prior notice and without any further obligation (other than the payment of accrued and unpaid wages and earned commissions as provided herein), upon the occurrence of any of the following: (i) the Salesperson's material breach of this Agreement or of any written Company policy; (ii) the Salesperson's commission of fraud, embezzlement, theft, dishonesty, or any act of moral turpitude; (iii) the Salesperson's conviction of, or plea of guilty or nolo contendere to, any felony or any crime involving dishonesty; (iv) the Salesperson's gross negligence or willful misconduct in the performance of duties; (v) the Salesperson's unauthorized disclosure or misappropriation of Confidential Information; or (vi) the Salesperson's prolonged inability to perform his or her essential duties, subject to applicable law.

    4. The Salesperson may terminate this Agreement for Good Reason, meaning a material and uncured breach of this Agreement by the Company, by delivering written notice of the breach to the Company and affording the Company not less than [Cure Period, e.g., thirty (30)] days within which to cure such breach.

    5. This Agreement shall automatically terminate upon the death of the Salesperson or upon the Salesperson's permanent inability, with or without reasonable accommodation, to perform the essential functions of the position.

    6. Upon termination for any reason, the Salesperson shall promptly (i) return to the Company all Company property, including documents, data, equipment, samples, keys, access credentials, and Confidential Information in his or her possession or control; (ii) cooperate in the orderly transition of accounts and responsibilities; and (iii) refrain from holding himself or herself out as being affiliated with the Company.

    7. The provisions of Sections 1, 9, 10, 11, 13, 14, 15, 16, 17, and 18 of this Agreement, together with any other provision which by its nature is intended to survive, shall survive the expiration or termination of this Agreement.

  13. Treatment of Commissions Upon Termination

    1. Upon termination of this Agreement for any reason, commissions shall be payable to the Salesperson only in respect of Qualifying Sales for which the Customer has executed a binding contract with the Company and the Company has received actual payment in collected funds on or before the effective date of termination.

    2. For the avoidance of doubt, the Salesperson shall not be entitled to any commission in respect of (i) sales for which contracts were executed after the effective date of termination; (ii) sales for which contracts were executed before termination but for which payment is received after termination; (iii) renewals, extensions, or expansions of previously booked contracts occurring after termination; or (iv) pipeline opportunities, forecasted sales, or sales in progress at the time of termination that have not satisfied all conditions for the commission to be deemed earned under Section 6 hereof.

    3. Any commissions earned but unpaid as of the effective date of termination shall be paid to the Salesperson in the next regular payroll cycle following termination, or within such shorter period as applicable law may require.

    4. The Company shall remain entitled to effect clawbacks under Section 9 hereof in respect of commissions previously paid, notwithstanding the termination of this Agreement, and the Salesperson's obligation to repay clawed-back amounts shall survive termination.

    5. Any unrecouped Draw balance outstanding as of the effective date of termination shall be reconciled against unpaid earned commissions and, to the extent any balance remains, shall be treated in accordance with Section 8 hereof.

    6. The termination provisions of this Section 13 reflect the Parties' considered agreement regarding the final allocation of commission entitlements and are intended to supersede any contrary common-law doctrine of "procuring cause," to the fullest extent permitted by applicable law.

    7. The Salesperson expressly acknowledges and agrees that the commission structure set forth herein, including the limitation of post-termination commissions to deals closed and paid before the effective date of termination, has been fully disclosed, understood, and accepted as a material inducement to the Company's willingness to engage the Salesperson on a commissioned basis.

  14. Confidentiality and Proprietary Information

    1. The Salesperson acknowledges that, in the course of employment with the Company, the Salesperson will have access to and will become acquainted with information of a confidential, proprietary, and trade-secret nature belonging to the Company, including, without limitation, Customer lists, Customer contact information, pricing information, sales strategies, marketing plans, financial data, product designs, business methods, software, know-how, and the terms of this Agreement (collectively, "Confidential Information").

    2. The Salesperson shall hold all Confidential Information in strict confidence and shall not, during the term of this Agreement or at any time thereafter, directly or indirectly, use, disclose, publish, reproduce, or otherwise make available any Confidential Information to any person or entity, except as necessary to perform the Salesperson's duties for the Company or as expressly authorized in writing by the Company.

    3. Upon termination of this Agreement, or upon the earlier request of the Company, the Salesperson shall promptly return or, at the Company's option, destroy all tangible and electronic materials embodying any Confidential Information, together with all copies and derivative works thereof, and shall certify in writing to the Company the completeness of such return or destruction.

    4. The Salesperson's confidentiality obligations hereunder shall not apply to information that (i) is or becomes generally available to the public through no breach of this Agreement by the Salesperson; (ii) was lawfully known to the Salesperson prior to employment, free of any confidentiality obligation, as evidenced by contemporaneous written records; or (iii) is required to be disclosed pursuant to a valid order of a court or governmental authority, provided that the Salesperson gives the Company prompt notice of such requirement so that the Company may seek a protective order or other appropriate remedy.

    5. All inventions, improvements, discoveries, works of authorship, data compilations, Customer relationships, and other work product conceived, developed, authored, or reduced to practice by the Salesperson, alone or with others, during the term of employment and relating to the business of the Company shall be the sole and exclusive property of the Company, and the Salesperson hereby irrevocably assigns to the Company all right, title, and interest therein.

    6. The Salesperson shall execute such further documents and take such further actions as the Company may reasonably request to perfect, record, or enforce the Company's ownership rights in such Confidential Information and work product.

    7. Nothing in this Section shall be construed to prohibit the Salesperson from making any disclosure protected by applicable whistleblower or similar laws, including disclosures to governmental agencies regarding suspected violations of law.

  15. Representations and Warranties

    1. Each Party represents and warrants to the other that it has full right, power, and authority to enter into this Agreement and to perform its obligations hereunder, and that the execution and performance of this Agreement does not and will not conflict with, violate, or constitute a breach of any other agreement, instrument, judgment, or legal obligation by which it is bound.

    2. The Salesperson represents and warrants that the Salesperson is not subject to any non-competition, non-solicitation, confidentiality, or other restrictive covenant that would prohibit, restrict, or impair the Salesperson's ability to perform the duties contemplated by this Agreement.

    3. The Salesperson represents and warrants that the Salesperson is legally authorized to work in the United States and will maintain such authorization throughout the term of employment, and will furnish the Company with such documentation as may be required to verify such authorization.

    4. The Salesperson represents and warrants that the Salesperson will not, in the performance of duties under this Agreement, use or disclose any confidential or proprietary information belonging to any former employer or other third party, except with proper authorization.

    5. The Company represents and warrants that it will administer commission computations, payments, and clawbacks in good faith and in accordance with the terms of this Agreement, and will maintain the records required by Section 10 hereof.

    6. Except as expressly set forth in this Agreement, neither Party makes any representation or warranty of any kind, express or implied, including, without limitation, any implied warranty of merchantability, fitness for a particular purpose, or non-infringement, and all such other warranties are hereby expressly disclaimed.

    7. Each Party acknowledges that it has entered into this Agreement in reliance only upon the representations and warranties expressly set forth herein, and not upon any other oral or written statement, promise, or inducement.

  16. Indemnification and Limitation of Liability

    1. The Salesperson shall indemnify, defend, and hold harmless the Company and its officers, directors, employees, agents, and affiliates from and against any and all third-party claims, losses, damages, liabilities, costs, and expenses (including reasonable attorneys' fees) arising out of or relating to (i) the Salesperson's breach of this Agreement; (ii) the Salesperson's gross negligence, willful misconduct, or fraudulent acts; (iii) any unauthorized representation or warranty made by the Salesperson to any Customer or prospective Customer; or (iv) the Salesperson's violation of applicable law.

    2. The Company shall indemnify, defend, and hold harmless the Salesperson from and against any and all third-party claims, losses, damages, liabilities, costs, and expenses (including reasonable attorneys' fees) arising out of or relating to the Salesperson's good-faith performance of duties within the scope of employment and in accordance with the Company's written instructions and policies, except to the extent such claims arise from matters for which the Salesperson is required to indemnify the Company under this Section.

    3. The Party seeking indemnification shall provide the indemnifying Party with prompt written notice of any claim for which indemnification is sought, shall tender control of the defense and settlement of such claim to the indemnifying Party (subject to the indemnified Party's right to participate at its own expense), and shall provide reasonable cooperation in the defense thereof.

    4. EXCEPT FOR LIABILITY ARISING FROM (I) A PARTY'S INDEMNIFICATION OBLIGATIONS HEREUNDER, (II) BREACH OF CONFIDENTIALITY OBLIGATIONS, (III) FRAUD, WILLFUL MISCONDUCT, OR GROSS NEGLIGENCE, OR (IV) THE COMPANY'S OBLIGATION TO PAY EARNED COMMISSIONS AND WAGES, NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, EXEMPLARY, OR PUNITIVE DAMAGES, OR FOR LOST PROFITS, LOST REVENUE, OR LOSS OF BUSINESS OPPORTUNITY, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

    5. To the maximum extent permitted by applicable law, the aggregate liability of either Party arising out of or relating to this Agreement, from all causes of action and under all theories of liability, shall not exceed the aggregate commissions paid or payable to the Salesperson during the twelve (12) months immediately preceding the event giving rise to the claim.

    6. The limitations and exclusions set forth in this Section 16 shall apply notwithstanding the failure of any limited remedy to achieve its essential purpose and shall survive the termination of this Agreement.

    7. Nothing in this Section shall limit or exclude any liability that cannot lawfully be limited or excluded under applicable law.

  17. Governing Law and Dispute Resolution

    1. This Agreement shall be governed by, construed under, and enforced in accordance with the laws of the State of [Governing State], without regard to its conflict-of-laws principles that would require the application of the laws of another jurisdiction.

    2. The Parties shall first attempt in good faith to resolve any dispute, controversy, or claim arising out of or relating to this Agreement, or the breach, termination, or validity thereof (a "Dispute"), by direct negotiation between representatives of each Party having authority to settle the Dispute, for a period of not less than [Negotiation Period, e.g., thirty (30)] days following written notice of the Dispute.

    3. If a Dispute is not resolved through direct negotiation within the aforementioned period, the Parties shall submit the Dispute to non-binding mediation administered by a mutually agreed mediator (or, failing agreement, by a mediator appointed by the American Arbitration Association) in [City, State], with the costs of mediation shared equally by the Parties.

    4. If the Dispute remains unresolved following mediation, either Party may submit the Dispute to final and binding arbitration administered by the American Arbitration Association under its then-current Employment Arbitration Rules and Mediation Procedures, with the arbitration to be conducted before a single arbitrator in [City, State]. Judgment upon the award rendered by the arbitrator may be entered in any court of competent jurisdiction.

    5. Notwithstanding the foregoing, either Party may seek injunctive, equitable, or other interim relief from a court of competent jurisdiction in aid of arbitration or to preserve the status quo, without first exhausting the negotiation or mediation procedures.

    6. The Parties irrevocably submit to the exclusive jurisdiction of the state and federal courts located in [County, State] for purposes of any action for interim or injunctive relief or for the enforcement of any arbitration award, and waive any objection based on venue or forum non conveniens.

    7. In any action or arbitration arising out of this Agreement, the prevailing Party shall be entitled to recover its reasonable attorneys' fees and costs, except to the extent such recovery is prohibited by applicable law.

    8. Each Party hereby irrevocably waives, to the fullest extent permitted by applicable law, any right it may have to a trial by jury in any legal proceeding arising out of or relating to this Agreement.

  18. Miscellaneous Provisions

    1. This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements, understandings, negotiations, and discussions, whether oral or written, relating to such subject matter.

    2. No amendment, modification, or waiver of any provision of this Agreement shall be effective unless set forth in a writing signed by duly authorized representatives of both Parties. No waiver of any breach or default shall constitute a waiver of any subsequent breach or default.

    3. If any provision of this Agreement is held to be invalid, illegal, or unenforceable by a court or arbitrator of competent jurisdiction, such provision shall be modified to the minimum extent necessary to render it enforceable, or if such modification is not possible, shall be severed from this Agreement, and the remaining provisions shall continue in full force and effect.

    4. Neither Party may assign, transfer, or delegate its rights or obligations under this Agreement without the prior written consent of the other Party, except that the Company may assign this Agreement without consent to any successor to all or substantially all of its business or assets, whether by merger, acquisition, sale, or operation of law. Any purported assignment in violation of this Section shall be null and void.

    5. All notices, demands, and other communications required or permitted hereunder shall be in writing and shall be deemed duly given upon (i) personal delivery; (ii) delivery by a nationally recognized overnight courier service; (iii) deposit in the United States mail, certified or registered, return receipt requested, postage prepaid; or (iv) transmission by email with confirmation of receipt, in each case addressed to the Parties at the addresses set forth in the signature block hereto (or such other address as a Party may designate by written notice).

    6. Neither Party shall be liable for any failure or delay in performance (other than the payment of amounts when due) resulting from causes beyond its reasonable control, including acts of God, natural disasters, acts of war or terrorism, epidemics, governmental actions, or failures of public utilities or communications networks, provided that the affected Party gives prompt notice and uses commercially reasonable efforts to resume performance.

    7. The relationship between the Parties is that of employer and employee, and nothing in this Agreement shall be construed to create a partnership, joint venture, agency, or franchise relationship beyond such employment.

    8. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. Signatures delivered by facsimile, electronic mail (including PDF), or other recognized electronic signature platform shall have the same force and effect as original signatures.

    9. The language of this Agreement shall be deemed to have been chosen by both Parties jointly, and no rule of construction providing that ambiguities are to be resolved against the drafting Party shall apply in the interpretation of this Agreement.

IN WITNESS WHEREOF, the Parties hereto have caused this Sales Commission Agreement to be executed by their duly authorized representatives as of the Effective Date first above written.

COMPANY:

[Company Legal Name]

By: _______________________________

Name: [Authorized Signatory Name]

Title: [Authorized Signatory Title]

Date: _______________________________

Address for Notices:

[Company Address]

Attention: [Contact Name/Title]

Email: [Company Notice Email]

SALESPERSON:

By: _______________________________

Name: [Salesperson Full Legal Name]

Date: _______________________________

Address for Notices:

[Salesperson Address]

Email: [Salesperson Notice Email]