Common use of Commission Structure Clause in Contracts

Commission Structure. Commission will be payable as a bonus at the end of each calendar year (i.e. December 31) payable within 45 days after the end of each calendar year, earned at the following rates; i) two and a half percent (2 1/2%) of the first two million dollars of the sales divisions pre-tax profits; ii) four percent (4%) of the next two million dollars of the sales divisions pre-tax profits; iii) five percent (5%) of the sales divisions pre-tax profits for all profits exceeding four million dollars. a) Pre-tax profits will be calculated as follows; on internally produced product an imputed distribution fee of thirty percent (30%), and a cost cap of five percent (5%) of gross sales; on acquired and other product, the fee's and costs will be as negotiated on each such product; less, the costs of the division (including salaries, trade-shows, expenses etc. and other costs of sales)