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Sales NDA for Commission Payout Strategies


This Non-Disclosure Agreement (the "Agreement") is entered into as of [March 1, 2050] (the "Effective Date"), by and between [Your Company Name], a corporation organized and existing under the laws of the State of Delaware, with its principal place of business at [Your Company Address] ("Disclosing Party"), and [Your Partner Company Name / Second Party], a corporation organized and existing under the laws of the State of California, with its principal place of business at [Your Partner Company Name / Second Party Address] ("Receiving Party").

I. Definition of Confidential Information

For purposes of this Agreement, "Confidential Information" shall include all information, whether written, oral, or observed, relating to the sales strategies, commission structures, client lists, and proprietary processes of [Your Company Name]. Specifically:

A. Proprietary Sales Strategies

Detailed descriptions of [Your Company Name]'s methodologies for identifying market opportunities, including historical sales data, market analysis, and targeted marketing tactics.

B. Commission Structures

The complete breakdown of the current commission payout structures, including percentage rates, bonus tiers, and performance metrics used to calculate sales commissions.

C. Client Lists

Data on current and prospective clients, including contact information, purchasing history, and strategic importance to [Your Company Name]'s sales objectives.

D. Proprietary Processes

Information about proprietary sales and negotiation processes developed by [Your Company Name], including scripts, training materials, and technology used in the sales cycle.

II. Obligations of Receiving Party

A. Non-use and Non-disclosure

[Your Partner Company Name / Second Party] agrees not to use Confidential Information except to evaluate and engage in discussions concerning a potential business relationship between the two parties. [Your Partner Company Name / Second Party] shall not disclose Confidential Information to third parties or employees except those who must have the information to evaluate or engage in discussions regarding the contemplated business relationship.

B. Maintenance of Confidentiality

[Your Partner Company Name / Second Party] shall take all reasonable steps to ensure the same level of protection for the Confidential Information as it would for its information of importance but, at a minimum, shall take prudent steps to protect it.

III. Return of Confidential Information

Upon the request of [Your Company Name] or the termination of discussions between the two parties, [Your Partner Company Name / Second Party] shall promptly return all copies of the Confidential Information received from [Your Company Name], whether in written, electronic, or other form or media, and shall destroy all notes, summaries, memoranda, or other writings prepared by [Your Partner Company Name / Second Party] based on the Confidential Information.

IV. Exclusions from Confidential Information

Confidential Information does not include information that:

A. Is or becomes publicly known through no act or omission of [Your Partner Company Name / Second Party];

B. Was in [Your Partner Company Name / Second Party]'s lawful possession before the disclosure;

C. Is lawfully disclosed to [Your Partner Company Name / Second Party] by a third party without restriction on disclosure;

D. Is independently developed by [Your Partner Company Name / Second Party].

V. Term

The obligations of [Your Partner Company Name / Second Party] hereunder shall last for five (5) years from the Effective Date, notwithstanding the earlier termination of this Agreement or any discussions or business relationship between the parties.

VI. Remedies

In the event of a breach or threatened breach by [Your Partner Company Name / Second Party] of its obligations under this Agreement, [Your Company Name] shall be entitled to seek equitable relief, including injunction and specific performance, in addition to all other remedies provided by law or in equity without the necessity of posting a bond.

VII. Commission Payout Structures

For the purposes of discussions surrounding potential business relationships, [Your Partner Company Name / Second Party] acknowledges the receipt of sample commission payout structures as illustrated in the following table:

Sales Threshold (USD)

Base Commission (%)

Tier 1 Bonus (%)

Tier 2 Bonus (%)

0 - 50,000


50,001 - 150,000


150,001 - 300,000


300,001 and above


A. Calculation of Commissions

The commission for any sales representative of [Your Company Name] is calculated monthly based on the gross sales revenue generated by that representative per the tiers outlined above.

VIII. Miscellaneous

A. Entire Agreement

This Agreement constitutes the entire agreement between the parties concerning the subject matter hereof, superseding all prior agreements, understandings, negotiations, and discussions, whether oral or written, between the parties.

B. Amendments

No amendment, modification, or supplement of any provisions of this Agreement shall be valid or effective unless made in writing and signed by a duly authorized officer of each party.

C. Governing Law

This Agreement shall be governed by and construed by the laws of [State], without regard to its conflict of law principles.

IN WITNESS of which, the parties have executed this Non-Disclosure Agreement as of the Effective Date first above written.

[Your Company Name]

[Your Name]

[Your Job Title]

[Month Day, Year]

[Your Partner Company Name / Second Party]

[Authorized Representative of Your Partner Company Name]

[Job Title]

[Month Day, Year]

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