This is a SAMPLE Recruiter Comp Exhibit. Please have your attorney and/or HR professional review any legal agreements or addendums before you put them in place in your organization.
***We are not attorneys, HR or Tax professionals***
Now that the legal disclaimers are out of the way, we get asked all the time for sample agreement language which our clients can pass along to their attorneys for concept and starter language. It is with this in mind that we are sharing our Sample Recruiter Comp Exhibit.
EXHIBIT A – SAMPLE
This document dated XXXXX constitutes a revised Exhibit A to the Employment Agreement dated XXXXX between XXXXX (hereinafter referred to as “Employee”) and XXXXX (hereinafter referred to as “Corporation”). This agreement supersedes and replaces any previous agreement oral or written regarding compensation between the two parties.
As a Recruiter, Employee shall be responsible for recruiting goals. Employee will also be responsible for training assignments and other special projects based on Company and market needs.
XXXXX per year
In addition to base salary, Employee will be eligible for a bonus based on the following two components.
#1 Agent Recruiting (more than $2M in verified volume) – see schedule 1 below
#2 Agent Recruiting (less than $2M in verified volume) – see schedule 2 below
Schedule 1: Agent Recruiting Bonus: (Quarterly Bonus)
Employee will be eligible to receive an Agent recruiting bonus (with a minimum of $2 million in verified volume) per Chart 1 below.
The Agent must be recruited directly from employee efforts and not from other Employee or Company efforts. Employee must be the procuring cause of the recruit hired. The prior year Agent earnings must be confirmed by providing the recruited Agent’s prior year 1099 form or via MLS data.
Chart 1: Bonus will be earned for each qualified agent per the table below:
|Volume||1099 Amount @ 3%||Per Agent|
|$40,000,001||And up||$958,800||And up||*$5,000|
Volume shown is for informational purposes only; the bonus is based on the prior year 1099 amount per the table above.
The following must occur for the bonus to be earned:
The recruited Agent must have a valid real estate license, the license must be submitted to the Company along with the Agent’s signed contract, and the Agent entered into the Company’s HR software.
*For Agent Recruiting Bonuses for agents with volume over $25,000,000 where Employee earns and is a paid a bonus of $3,500 or more for that agent, the seasoned agent must be with the Company for a minimum of 90 days from the Hire Date. If the agent leaves in 90 days or less, the bonus amount previously paid to Employee for that agent will be deducted from future bonuses earned.
For Agents who are recruited by Employee (cultivates the lead and converts it to a hire) but the lead is initially referred by another Company Recruiter, Employee will receive 50% of the bonus per Chart 1.
For Agents who are recruited by Employee (cultivates the lead and converts it to a hire) but the lead is initially referred by a Company appointment setter, Employee will receive the bonus per Chart 1 minus the bonus due the appointment setter (currently $100).
If other resources are provided to assist in lead generation, managing lead, or converting lead in order to achieve an Agent Recruit, this compensation plan may be adjusted accordingly.
Schedule 2: Seasoned Agents (with less than $2M in Volume) Recruiting Bonus:
Employee is eligible for a bonus of $200 per agent recruited where the agent has less than $2,000,000 in verified volume for the prior 12 month period. To be eligible for bonus the agent must have a valid real estate license and the license must be submitted to the company along with the agent’s signed contract.
Calculation of Bonus: (Quarterly Calculation)
At the end of the quarter, Employee will submit a quarterly list of Agents recruited and their verified volume approved by the Company. From this list the quarterly bonus will be calculated and paid on the next pay period.
Review and adjustment of compensation plan:
The Company reserves the right to increase, decrease, or modify the schedule(s), salary, and/or incentive plan at any time for any reason or for no reason. Written notice will be provided. The changes will not be retroactive.
If either Employee or Company terminates this agreement prior to year end, Employee’s bonus due will be calculated through the date that the Employee leaves the Company. No bonus will be due or payable after the Agreement is terminated. (Termination defined as date Employee leaves Company whether voluntarily or involuntarily).
All other approved expenses, fees, etc. incurred during Employee’s contract that accumulated but are not paid or recorded prior to agreement termination are to be adjusted in the final commission calculations prior to arriving at payments due Employee.
By signing below, the parties represent that they have read and understand the contents of this Compensation Agreement. This Agreement does not alter the at-will nature of the employment relationship.
Agreed and accepted:
Download the Word Doc of the above – Sample Recruiter Comp Exhibit