Product Info - Buy Commission Agreements - Investment Management: Sales Rep

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Sample Investment Trading Broker CommissionPlan Template

i InvestmentTradingBroker Compensation

Agreement

 

This document describesthe agreement between iii______________ (Company)and iv (Broker) regardingterms related to compensation.

Companyand Repenterinto this agreement wherebyBrokerprovides sales services to the

Companyinreturnforcompensation specified in this agreement.

 

Duration:

This agreementcovers theperiod startingfromv and endson.

All commissions will becalculatedand paid onceeverymonth, forthe preceding month. Commissions willbecalculated and paidout as part ofthe next payoutcycle, following the month forwhich commissions arecalculated. 

 

Base Pay:

vi Sales Rep's basesalary(if any) is specified as part ofaseparateagreement. 

 

SalesCompensation:

Targetedsalescompensationforthefullyearisvii .Thesalescompensation is notcapped.

 

Other Compensation:

SalesRepwillbepaidforalltravelandlodgingexpensesrelatedtosalesactivities. Autotravel willbereimbursed at thecurrent federal reimbursement rateviii (Currently$0.56cents per mile).

SalesRepswillberequiredtomaintainacellphoneaspartofconductingsales business.Sales Rep willbeprovided anallowanceofix $50permonth forcellphone usage.

Client entertainment expenses willbereimbursed as following: Meals: Reimbursable with receipts.

Special Events: Mustbepre-approved. Reimbursable with receipts.

Expenseswillbereimbursedwithin 30 daysof beingpresented withthereceiptsand a completed expensereimbursement form. 

 

Territory:Rep gets direct creditforallclients assigned to. Assignment ofclients to reps can beby Client, Sector orlocation

CellarStone,Inc. Copyright

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InvestmentCommission:

 

Sales Credits:

Sales Commission is paid to theRep based on thesale ofthe followingproductsthat the

Rep is involved in directly:

Stock Trades

Bond Trades

DerivativeTrades

Options trades

Futures trades

Commoditiestrades 

Rep getscreditforspecific clients or specificlocations within clients. Rep earns commissions onlywhenatradeis completed. 

Calculation:

Sales credits are provided to the Rep.Incoming commission/Revenueto thefirm is calculated bymultiplying acommission rate bythe number ofshares sold. 

Sales rep’s commission rate is then applied on this incomingcommission due to the Rep. 

CommissionRate: 25% 

Example:

AssumingRep completesthe followingTrades in thefirst month-

Stock

# of Shares

Comm. Rate Revenue

INTC

100,000

0.05 $5,000

 

Commissions willbecalculated as following:

INTC $5,000at 25% =$1,250 

 

DebtCommission:

 

Sales Credits:

Sales Commission is paid to theRep based on thesale ofthe followingproducts that the

Rep is involved in directly: Bond Trades

Rep getscreditforspecific clients or specificlocations within clients. Repearns commissions onlywhenatradeis completed. 

 

Calculation:

Sales credits areprovided to the Rep.Incomingrevenue to thefirm is calculated by findingthe differencebetween the buyand sellportions of the transaction 

Sales rep’s commission rate is then applied on this incomingcommission due to the Rep. 

CommissionRate: 10%

 

Example:

AssumingRep completesthe followingTrades in thefirst month-Stock Amount Trade

GE8.75 $100,000 Buy

GE9.65 $110,285 Sell 

Spread $10,285

 

Commissions willbecalculated as following:

GE8.75 $10,285 at 10% =$1,028.5 

 

Cap:

Thereis no cap on anypayouts to theRep.

 

OtherCompensation:

Rep is notdueanyothercompensation.

 

Termination ofAgreement:On voluntaryor involuntarytermination ofRepengagementwith theCompany, commissions willbepaidon transactions dated priorto thetermination dateonly. Any

Amountsowed to the Repwillbeaccordingto regulations after withholdingtaxes and

Otherdues.

 

OtherTerms:

 

1.Rep agrees to follow allFederal andLocal lawswhile engaged in providing services to theCompanyduringthe period ofthisagreement.

2.Rep shallrepresent theproducts of the companypositivelyand with thehighest standards.

3. Rep shallusethe most ethical practices whileengagingin anysales activity.

4.Rep agrees to protect allconfidential material includingprospect data, sales data, and client information belongingto theCompanyand shalltakeallreasonable carein makingsurethatsuch confidential material is not disbursed to anyone outsidethe company.

5. This entireagreement shallbegoverned bythelaws ofthe State of . 

 

 

Company                            Rep

 ______________               ______________ 

 

By                                        By

 ______________              ______________

  

Name                                  Name

______________               ______________ 

 

Date                                   Date

______________                ______________

iAnypartofthisagreementcanbechangedoroverriddenbasedonyourneeds

iiThisdate willgive usinformationastowhenthisagreementwaswrittenanddistinguishitfromsimilar otheragreements. 

iiiFilloutthecompanynamehere 

ivFilloutthepayee'sfullnamehere

vEnterthestartandenddateforthesalescommissionplaneffectiveperiod.Mostcompaniesusethe calendarorfiscalyearstartandenddateforthesevalues.Somecompaniesmaynothaveanenddate

specified. 

viAlternativelyyoucanremovethissectionorphraseitsuchasBasesalaryisspecifiedinaseparate employmentagreement.

viiTargetedsalescompensationforthefullyear

viiiSearchforcurrentIRSmileagerate.

ixYoucanputanyamountoryoumaycompletelyremoveitorchangebasedonyourneeds

 

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