# EXAMPLE: BONUS AND COMMISSION AGREEMENT
Date: 15 March 2028
Parties: Hearth & Field Retail Limited and Marcus Reed
## 1. Parties and consideration
Hearth & Field Retail Limited appoints Marcus Reed, Regional Sales Manager, to the 2028 incentive plan. Base salary and contractual benefits remain £61,000 a year and are not replaced by this plan.
## 2. Subject matter
A quarterly commission is earned on net revenue received from a customer: 2% on the first £300,000, 3% from £300,001 to £500,000 and 4% above £500,000, subject to the customer account being credited to Marcus.
## 3. Operating terms
The annual bonus target is 12% of base salary. Payment depends on 70% regional gross-margin target, 20% customer-retention target and 10% compliance score; the board may not reduce an earned amount arbitrarily.
## 4. Document mechanics
Commission is calculated after discounts, refunds, VAT, bad debt and cancelled orders. It is paid with the second payroll after month-end, while bonus is paid by 31 March 2029 after audited results and lawful deductions.
## 5. Party obligations
If a customer does not pay within 90 days or a sale is refunded for misrepresentation, the related commission may be withheld or clawed back from future variable pay after written calculation. No deduction may breach the Employment Rights Act 1996.
## 6. Termination and survival
On resignation, dismissal or garden leave, commission earned before the leaving date remains payable. A dismissal for gross misconduct may affect an unearned bonus only under a fair process; no post-termination sales may be solicited.
## 7. Signatures
The plan year ends 31 December 2028 and changes require written notice before the relevant performance period. Disputes go first to Finance review, then People Director appeal. Signed by Hearth & Field and Marcus: ____________________.