SAMPLE COMMISSION OFFER LETTER
Re: Offer of Employment
Dear _________:
We are pleased to offer you employment with________________, on the following terms
and conditions:
1. Position: You will join our team as a
. This is a full time position. Your also agree to devote all of your working time, and
apply all of your skill, ability, and energy to the faithful performance of such duties and
responsibilities as the Company may assign during your employment, including any goals or
expectations for sales, revenue, and productivity.
2. Start Date: Your employment is to begin no later than
.
3. Employment At Will: The Company is an at-will employer, and does not
guarantee employment for any specific duration. Your employment can be terminated at any time by
you or the Company, with or without cause or prior warning. This provision concerning termination
of employment supersedes all prior agreements and understandings, and can be amended or modified
only in a formal written contract signed by you and me.
4. Draw: You will receive a draw of $ per month, minus
appropriate withholding and payroll deductions, to be paid through the Company’s regular
payroll. Your draw will be applied against all commission earnings. Should your employment
end for any reason without you having earned commissions to cover all draw paid to you, you
agree to repay the Company for all excess draw, and for that purpose you consent to a payroll
deduction from any compensation due you from the Company.
5. Commissions: You will be eligible to earn commissions at the rate of
% of the net invoice amount of orders for approved products and services that you are
responsible for generating within your territory and that are shipped, accepted, and paid in full to th e
Company during your employment. Your territory is non-exclusive, as sales may also be made
to house accounts and through other employees, representatives, and distributors. The Company
reserves the right to exclude from this commission agreement the house accounts listed on
Exhibit A or later designated in writing.
Net invoice amount means the amount received by the Company from the transaction
minus deductions and chargebacks as determined by the Company under its standard accounting
practices. The commission rate shall be adjusted accordingly for sales at a discount.
Commissions earned under this Agreement are payable on the ___th day of the month following
payment to the Company. The Company reserves the right to change your list of approved products
and services, territory, and new house accounts upon written notice. The Company shall also have
the final discretion to determine any commission splits or other disputes over commissions if the
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salespersons involved cannot come to agreement among themselves.
No commission is earned, due or payable under this Agreement unless the Company actually
receives payment during your employment on orders you are responsible for generating. Upon
termination of employment for any reason, you will be entitled to commissions only for such orders
that are actually paid to the Company on or before your termination date [or, within ___ days after
your termination date.].
6. Benefits: You will receive the following benefits:
A. Insurance: Group medical, dental, disability, and life insurance coverage for
yourself after completing thirty days of employment, in accordance with the terms of
the Company’s insurance plans and policies.
B. Vacation: Two weeks paid vacation per year, accruing at the rate of 6.67
hours per month of full time service from your date of hire. Unused vacation may be carried
over from year to year, but the maximum amount of unused vacation that can be accrued at
any time is one and one-half years’ worth.
C. Sick Days: Five days sick leave each year to be used for illness or injury,
accruing at the rate of 3.33 hours per month of full time service after you have completed
thirty days of service.
D. 401(k): You will become eligible to participate in the Company’s 40l(k) Plan
on the next enrollment date following one year after your date of hire.
E. Expense Reimbursement: The Company will reimburse you for all
reasonable and necessary business expenses you incur in the course of performing your
duties and responsibilities, provided you submit adequate documentation for all expenses, up
to a maximum of $50 per month. Any expenses in excess of $50 per month will be
reimbursed only with the prior written consent of the Company.
F. Educational Allowance: With prior written approval of the Company, you
may be reimbursed for tuition, travel, and other costs in connection with continuing formal
education, training, and other related activities that will enhance your knowledge and ability
within your profession. Each request for reimbursement will be considered on a case-by-case
basis, and will be provided only on the condition that employees who quit within two years
(or other specified period) after completing the educational activities must repay the
Company by means of a payroll deduction for all educational reimbursement they received.
7. Loyalty and Confidentiality: You agree to give the Company your undivided
loyalty, and to devote your full time and attention to the business of the Company. You also
acknowledge that in the course of your employment, you will be entrusted with confidential
information about the Company’s products, services, customers, prospects, marketing plans, sales
strategies, prices, costs, discounts, profit margins, finances, business plans, personnel, and other
aspects of its business (“Confidential Information”) all of which the Company considers to be legally
protected trade secrets. To protect the Company’s trade secrets, and as part of your duty of loyalty,
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you accept the following obligations:
A. During the entire period of your employment, you will refrain from engaging
in other employment, rendering outside services, or conducting other business without the
Company’s prior written consent.
B. During the entire period of your employment, you will not participate directly
or indirectly in any business that competes with the Company, either as an employee,
consultant, investor, or other capacity, nor will you make preparations to participate in such
competing business.
C. During the entire period of your employment and at all times thereafter, you
will not use or disclose any of the Confidential Information, either for yourself or for the
benefit of any other person or entity, except in the course of properly performing your duties
during your employment by the Company.
D. Upon termination of your employment or at any time upon request of the
Company, you will immediately render a full accounting of all business transacted during
your employment, and return unconditionally all property of the Company in your
possession, including but not limited to all files, records, correspondence, data bases, office
equipment, or other property that came into your possession in the course of your
employment with the Company.
8. Conditions: In addition to your accepting the terms of this letter, this offer of
employment is conditioned upon all of the following:
A. Your undergoing and successfully completing a pre-employment screening
for drugs and alcohol.
B. The Company receiving three satisfactory references from you. You hereby
consent to the release of all available information for that purpose.
C. Your signing the enclosed Confidentiality Agreement.
D. Your presenting acceptable proof of your identity and authorization to work
as required by immigration laws.
9. Complete Agreement: This letter sets forth our complete agreement concerning
your employment, and supersedes all prior agreements and understandings.
To confirm that you agree to these terms, please sign and date the enclosed copy of this letter
and return it to me no later than . I welcome you to the Company, and
I wish you success in your employment.
Very truly yours,
Company
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I agree to the terms stated in this letter.
Dated:
Employee’s Signature
DOCSOC/102237v1/019999-0000
