1.2. Calculation of Commissions. Compensation shall be commission only. Commissions shall be payable to the Representative for all net billings, for all orders of those products solicited directly by the Representative. AHS reserves the right to determine the Representative’s ownership of each order, at its sole discretion. Such orders must be delivered and billed to the customer with the territory described herein, when said products are sold at AHS’s current list price, or such other promotional prices as AHS shall specify in writing from time to time. AHS’s current list price is defined as the selling price, which is currently in AHS’s “Inventory Item File” of it computer system upon the date of receipt of the customer’s bonafide purchase order. “AHS’s Promotional Prices” is defined as the selling price, which is currently advertised in AHS’s catalogs and/or other promotional literature, and which at AHS’s sole discretion is currently in effect upon the date of receipt of the customer’s bonafide purchase order.

The Commission rate for sales in each month during which the Representative actively works shall be paid according to the following schedule.

  • Sales equal to, or less than $15,000 per month =15% commission
  • Sales from $15,001 to $20,000 per month =18% commission
  • Sales exceeding $20,000 per month = 20% commission

Representatives shall be entitled to payment of commission at the above rates, provided that each sale on which commission is to be paid is in strict compliance with AHS Authorized Prices. If a sale does not meet AHS’s terms of sale or is made for a different price than AHS’s Authorized Price for the particular product or products, AHS may, at its sole discretion, either reject the order or accept the order while deduction any added cost or pricing deficiency from any payment due to the Representative.

1.3. Offsets and Charge-Backs. In calculating the Representative’s commission, the Company may offset any credits, cancellations, refunds, allowances, and returns to or by customers of revenues on which Representative has already been paid commissions under this agreement, but in no event will the offset for any customer exceed the sales price of that customer’s returned, cancelled, or otherwise credited Products.

1.4. No Commissions in Certain Circumstances. The Company will not be required to pay the Representative a commission in any of the following circumstances:

  1. if prohibited under applicable Law,
  2. if the Representative did not directly facilitate the sale of the Products to a customer,
  3. on any sale to any customer that is directly or indirectly owned by or under common ownership with the Representative,
  4. on any sales outside of the Territory, or
  5. on any sale of Products to a customer occurring after the expiration or termination of this agreement, unless the sale is the direct result of the Representative’s sales efforts before the termination or expiration.

1.5. Expenses. The Representative is solely responsible for any expenses it incurs in performing its services under this agreement. Unless previously approved by AHS.

1.6. Definition of “Net Amount.” In this agreement, “Net Amount” means the sales price of the sold product as listed on the applicable invoice, less charges may include, but not limited to, handling, freight, sales, use, value added, or similar taxes, import or export taxes or levies taxes, C.O.D. charges, insurance, customs duties, trade discounts, and any other fees or charges of any Governmental Authority.