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Commission Sales Draw Agreement

A draw is a loan from the company to a salesperson that is carried forward until he or she earns sufficient commissions and/or incentives to repay the loan or until the employee is no longer employed with the company. A weekly draw of no more than $1,000 (less any applicable withholdings and payroll taxes) will be paid on regularly scheduled paydays when a salesperson's commission earned is less than the draw limit. The sales employee will be advanced the difference between commissions earned during the week and the draw limit.

If future commissions earned are greater than the draw limit and there is a current draw balance owed to the company, then the excess amount will be used to pay down the draw balance; however, the amount applied will not exceed 50 percent of the earned commission in any given period.

If a salesperson's employment is terminated prior to full repayment of the draw, then the amount outstanding becomes due and payable in full at the time of termination. The company reserves the right to withhold the outstanding balance from any accrued vacation due at the time of termination as well as from any other form of compensation due to the salesperson to include salary, commissions, incentives, buy-back of stock differentials and reimbursable expenses where allowed by state and federal law.

By signing below, I hereby agree to the terms and conditions contained herein.

Employee's Signature  


Printed Name 


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