In this form, the sales executive receives as compensation a salary as well as a commission on sales. The executive also receives common stock in the company after being with the company a certain period of time.
Employment Agreement between Sales Executive and Company Agreement made on the ___ day of __________, 20___, between John Doe of (street address, city, county, state, zip code), referred to herein as Sales Executive, and Acme, Inc., a corporation organized and existing under the laws of the state of ______________, with its principal office located at (street address, city, county, state, zip code), referred to herein as Company. Whereas, Company is engaged in the (nature of business), and in the sale of (type of product); and Whereas, Company desires to employ Sales Executive, pursuant to the terms of this Agreement and offer Sales Executive certain stock incentives to encourage a long term and productive relationship between Company and Sales Executive representative; Now, therefore, in consideration of the matters described above, and of the mutual benefits and obligations set forth in this Agreement, the parties agree as follows: 1. Employment of Sales Executive Company employs Sales Executive to head its sales department and to sell its merchandise and products in the following territory: (description of territory), and such other territories on which both parties may agree in writing and which subsequent agreements shall be incorporated in and made a part of this Agreement. II. Duties of Sales Executive Sales Executive will serve Company faithfully and to the best of his ability under the direction of the board of directors of Company. Sales Executive will devote all of his time, energy, and skill during regular business hours to such employment. Sales Executive shall perform such services and act in such executive capacity as directed by the board of directors of Company. III. Term of Employment This Agreement and the employment under this Agreement shall commence on the effective date stated above, and continue for ___ years from the date of this Agreement. IV. Compensation A. Sales Executive’s salary shall be at the rate of $________ per year from (commencement date). Employer shall pay Sales Executive’s salary in cash and in monthly installments of $____________, such payment to be made on the last day of each month during the term of this Agreement. B. Company shall also pay Sales Executive a ____% commission on the net selling price of all merchandise and products of Company shipped and billed on orders received and accepted by Company under the terms of this Agreement. Commissions shall be paid on the ___ day of each (e.g., month, quarter). C. As further consideration for his contributions to the Company, the Company shall issue to Sales Executive shares of common stock of the Company, fully paid and nonassessable in accordance with the following schedule: 1. The number of shares equivalent to ____% of the outstanding common stock on or before (date). 2. The number of shares equivalent to ____% of the outstanding common stock on or before (date). 3. The number of shares equivalent to ____% of the outstanding common stock on or before (date). 4. The number of shares equivalent to ____% of the outstanding common stock on or before any public offering of stock in the Company. V. Customer’s Failure to Pay Account A. In the event of nonpayment of a customer's account resulting in a loss to Company, Sales Executive shall be charged with a sum equal to his commission rate or percentage on the unpaid balance owing by the customer. B. If any customer's account becomes (number) days in arrears, Sales Executive shall be charged with a sum equal to his commission rate or percentage on the unpaid balance of the account, and such commission debit shall be suspended, subject to being recr
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