Employing a sales manager is essential to ensuring the profitability, growth and survival of a business in any sector, because a sales manager plans, organizes, directs and controls all activities related to the promotion and sale of the business’ products and services.

This employment agreement template provides the main legal, administrative and financial elements to clearly define the rights and obligations of both parties in order to better manage their employment relationship.

We recommend using an employment agreement when the terms of employment are fairly complex, given that it is broader in scope and defines the employment relationship in greater detail than the related letter of hire (template C03555).

It should be noted that in Canada there are no legal provisions requiring an employer and an employee to sign a formal employment agreement. A simple verbal agreement is sufficient to establish the employment relationship. However, a verbal agreement may fail to clearly define the rights and obligations of the parties or provide the legal framework to meet their specific needs.

0.00 INTERPRETATION
0.01 Definitions
0.01.01 Activities
0.01.02 Admissible Expenses
0.01.03 Agreement
0.01.04 Best Effort
0.01.05 Board of Directors
0.01.06 Budget
0.01.07 Change in Control
0.01.08 Client
0.01.09 Code of Conduct
0.01.10 Confidential Information
0.01.11 Entire Term
0.01.12 Fiscal Year
0.01.13 Force Majeure
0.01.14 Intellectual Property
0.01.15 Law
0.01.16 Legal Representatives
0.01.17 PARTY
0.01.18 Person
0.01.19 Prime Rate
0.01.20 Related Person
0.01.21 Suppliers
0.01.22 Territories
0.02 Precedence
0.03 Jurisdiction
0.03.01 Governing Law
0.03.02 Non-compliance
0.04 Miscellaneous
0.04.01 Cumulative Rights
0.04.02 References within Agreement
0.04.03 Gender and Number
0.04.04 Headings
0.04.05 Presumptions
0.04.06 Knowledge
0.04.07 Approval
0.04.08 GAAP
1.00 PURPOSE
1.01 Employment
1.02 Responsibilities
1.03 Delegation of Authority
1.03.01 General Powers
1.03.02 Accountability
1.04 Workplace
2.00 COMPENSATION AND BENEFITS
2.01 Signing Bonus
2.02 Base Salary
2.02.01 Initial
2.02.02 Adjustment
2.03 Performance Bonus
2.04 Option
2.04.01 Grant
2.04.02 Duration
2.04.03 Exercise
2.05 Vacation
2.06 Insurance
2.06.01 Disability
2.06.02 Liability
2.06.03 Collective or Group
2.07 Pension Plan
2.08 Acknowledgement
3.00 TERMS OF PAYMENT
3.01 Signing Bonus
3.02 Base Salary
3.03 Performance Bonus
3.04 Interest
4.00 SECURITY
5.00 MUTUAL REPRESENTATIONS AND WARRANTIES
6.00 REPRESENTATIONS AND WARRANTIES OF EMPLOYER
6.01 Status
6.02 Authority
6.03 Binding Agreement
7.00 REPRESENTATIONS AND WARRANTIES OF SALES MANAGER
7.01 Canadian Resident
7.02 Information
7.03 Health
8.00 MUTUAL DUTIES AND OBLIGATIONS
9.00 DUTIES AND OBLIGATIONS OF EMPLOYER
9.01 Resources
9.02 Equipment
9.02.01 Laptop Computer
9.02.02 Mobile Communication Device
9.03 Expenses
9.04 Indemnification
9.05 Training
9.06 Relocation
9.07 Personal Information and Privacy
9.08 Termination of Employment
9.08.01 Balance
9.08.02 Career Transition Assistance
10.00 DUTIES AND OBLIGATIONS OF SALES MANAGER
10.01 Availability/Exclusivity
10.02 Collaboration
10.03 Relationship with Management
10.04 Distribution Network
10.05 Support
10.06 Database
10.07 Conduct
10.08 Confidential Information
10.08.01 Acknowledgement
10.08.02 Return of Documentation
10.09 Non-competition
10.09.01 Scope
10.09.02 Adjustments
10.09.03 Penalty
10.10 Non-solicitation of Clients
10.10.01 Scope
10.10.02 Penalty
10.11 Non-solicitation of Staff
10.11.01 Scope
10.11.02 Penalty
10.12 Business Opportunities
10.13 Conflict of Interest
10.14 Intellectual Property
10.14.01 Disclosure
10.14.02 Assignment
10.14.03 Waiver
10.14.04 Cooperation
10.14.05 Execution
11.00 SPECIAL PROVISIONS
11.01 Assignment
11.02 Other Remedies
11.02.01 Choices
11.02.02 No Limitations
11.03 Prescription
12.00 GENERAL PROVISIONS
12.01 Notice
12.02 Dispute Resolution
12.02.01 Good Faith Negotiations
12.02.02 Mediation
12.02.03 Arbitration
12.03 Election
12.04 Counterparts
12.05 Amendment
12.06 Waiver of Rights
12.07 Electronic Transmission
12.08 Language
13.00 TERMINATION
13.01 Mutual Consent
13.02 By EMPLOYER
13.03 By SALES MANAGER
13.04 Termination of Employment
13.04.01 Departure
13.04.02 Reimbursement of Advances
14.00 EFFECTIVE DATE
15.00 DURATION
15.01 Probationary or Trial Period
15.02 Initial Term
15.03 Renewal
15.04 Indeterminate
15.05 Survival
15.06 Non Renewal
16.00 SCOPE

SCHEDULE A – EXCERPT FROM A RESOLUTION OF EMPLOYER