Cannabis Sales Draw Form

Cannabis Sales Draw Form

WHEREAS

Company Name:

Payee Name (Recipient of Draw):

WHEREAS, Company operates licensed cannabis retail and/or distribution services and maintains records of gross sales for the purpose of compensating sales personnel and contractors; and

WHEREAS, Payee performs sales activities or sales management functions for Company and is eligible to receive periodic draws against earned commissions or sales revenue on the terms set forth herein.

Scope of Work

Sales Draw Details

Draw Amount: $    Draw Frequency:

Commission Rate (% of qualifying sales):    Sales Period Start:    Sales Period End:

Draws are advances against commissions and will be reconciled against gross qualifying sales for each sales period. Reconciliation due within days after period end. Any deficit or overpayment resulting from reconciliation will be offset against subsequent payments.

Payment Terms

Payment Method:

Payment Schedule: Company will disburse draws on the following schedule: . All payments are subject to reconciliation and lawful withholdings.

Late Fee for Past Due Reconciliation: If Company fails to reconcile and pay net amounts due to Payee within the reconciliation period, a late fee of % per month (or the maximum lawful rate, if less) will accrue on the overdue net balance, calculated daily from the due date until paid in full.

Offset and Recovery: Payee authorizes Company to offset any overpaid draw amounts, shortages, refunds, or regulatory penalties against future draws, commissions, or final compensation. Company retains the right to recover uncollected overpayments by deduction from subsequent payments or by invoice to Payee.

Term and Termination

Effective Date:    Term End Date (if any):

Either party may terminate this agreement without cause upon days' written notice. Company may terminate immediately for cause, including but not limited to material breach, fraud, violation of cannabis regulatory requirements, revocation or suspension of Company's license, or unlawful conduct.

Post-Termination Reconciliation: Upon termination, final reconciliation will be completed within days. Any amounts owed by either party following reconciliation are immediately due and payable.

Confidentiality

Payee acknowledges that during the course of performing sales duties Payee will receive Confidential Information, including sales data, pricing, customer lists, inventory levels, and regulatory compliance procedures. Payee shall (a) hold such information in strict confidence; (b) use the information solely for performance under this agreement; and (c) not disclose such information to any third party without Company's prior written consent, except as required by law. This obligation survives termination for a period of years.

Compliance and Certifications

Payee certifies that all sales activity and reporting will conform to applicable cannabis laws and regulations and Company policies. Payee further certifies that Payee is legally authorized to participate in cannabis sales in the applicable jurisdiction and will promptly notify Company of any event that would render Payee ineligible to perform sales functions.

Governing Law

This Agreement will be governed by and construed in accordance with the laws of the State of , without regard to choice-of-law principles. Venue for any dispute shall be in the state or federal courts located within that state.

Entire Agreement

This document constitutes the entire agreement between Company and Payee regarding sales draws and supersedes all prior oral or written representations, understandings, or agreements. Any modification must be in writing and signed by both parties to be binding.

If any provision of this Agreement is held invalid or unenforceable, the remaining provisions will remain in full force and effect. The waiver by either party of a breach of any provision shall not operate or be construed as a waiver of any subsequent breach.

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