Can this agreement be signed electronically?

Yes. Electronic signatures meet federal ESIGN Act standards (15 U.S.C. ch. 96) and UETA in most states when intent, consent, attribution, and retention are demonstrable.

Are noncompete clauses enforceable everywhere?

No. Enforceability varies by state—California severely restricts noncompetes, while other states allow them if reasonable in scope, duration, and geography. Consult state law before relying on such clauses.

Do commissions continue after termination?

It depends on the contract language. Specify whether commissions are payable for deals in progress at termination and define any clawback conditions to avoid disputes.

Is notarization required for an employment agreement?

Not typically. Notarization is generally unnecessary for standard employment agreements unless state law or specific clauses require it for enforceability.

What records should HR keep?

Retain the signed agreement for the employment term plus at least three years; longer periods may apply for tax, HIPAA, or industry-specific regulations.

How to handle disputed commission calculations?

Include a dispute resolution process in the agreement (e.g., internal review, arbitration) and keep documentation of sales approvals, returns, and billing to support calculations.

Electronic Signature
Templates
HR
Territory Manager Employment Agreement

Territory Manager Employment Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

TERRITORY MANAGER EMPLOYMENT AGREEMENT

PARTIES AND EFFECTIVE DATE

This Employment Agreement (the “Agreement”) is entered into between Employer Name: and Employee Name: .

Effective Date: .

PERSONAL INFORMATION

Full Legal Name Home Address

Phone

Email

POSITION AND TERRITORY

Job Title: Department:

Reporting Manager: Employment Status: Full-Time Part-Time Exempt Non-Exempt

Primary Territory (counties, regions, or accounts)

TERM OF EMPLOYMENT

The term of employment is at-will unless otherwise set forth in a written amendment signed by both parties. Employment commencement date: .

COMPENSATION AND EXPENSES

Base Salary: $ per year. Payable: .

Commission / Incentive Structure

Target Quota: . Commission payment schedule and chargeback conditions are described in the attached commission addendum.

Expense Reimbursement Policy

BENEFITS

Vacation Days per Year: Sick Days per Year: .

Eligibility for health insurance Participation in retirement plan (subject to plan terms)

EMPLOYEE DUTIES AND PERFORMANCE

Employee shall devote full working time, attention, and best efforts to performance of duties consistent with the position of Territory Manager. Duties include but are not limited to client acquisition, account management, territory planning, reporting, and compliance with company policies. Performance metrics:

CONFIDENTIALITY; PROPRIETARY RIGHTS

Employee will protect and maintain in confidence all Confidential Information of Employer. Employee assigns to Employer all right, title and interest in any inventions, discoveries, improvements, or works made in the course of employment. Employee acknowledges obligations continue after termination.

Exceptions or carve-outs to proprietary assignment (if any)

NON-SOLICIT / NON-COMPETE

During employment and for months after termination, Employee shall not solicit customers or employees of Employer within the territory: . The restrictions will be enforced to the maximum extent permitted by law.

TERMINATION

Employer or Employee may terminate employment at any time. If Employer terminates without cause, Employer will provide notice or pay in lieu of notice as follows: .

Termination for cause includes willful misconduct, material breach of this Agreement, gross negligence, or violation of law.

TERMS OF NOTICE

Employer Notice Address Employee Notice Address

DISPUTE RESOLUTION AND GOVERNING LAW

This Agreement shall be governed by the laws of the State of: . Any dispute arising out of this Agreement will be resolved by binding arbitration unless otherwise prohibited by law. The arbitral forum and rules are as agreed in writing.

MISCELLANEOUS

Entire Agreement: This Agreement, together with any attached addenda, constitutes the entire agreement between the parties and supersedes prior agreements with respect to the subject matter. Amendments must be in writing and signed by both parties. If any provision is held invalid, the remaining provisions will continue in full force.

AUTHORITIES AND AUTHORIZATIONS

Employee authorizes Employer to contact prior employers and references and to conduct background and motor vehicle record checks as permitted by law. Employee authorizes these checks.

EMPLOYMENT HISTORY

Previous Employer 1 — Company

Responsibilities Reason for Leaving Previous Employer 2 — Company

Responsibilities Reason for Leaving

EDUCATION

Highest Degree Institution Graduation Date

REFERENCES

Reference 1

Reference 2

Reference 3

LEGAL DISCLOSURES

At-Will Employment: Employee acknowledges that employment with Employer is at-will and may be terminated by either party at any time with or without cause or notice, unless modified by a written agreement signed by both parties.

Equal Opportunity: Employer is an equal opportunity employer and does not unlawfully discriminate on the basis of any protected characteristic.

EMPLOYEE CERTIFICATIONS

I certify that the information provided in this Agreement and supporting documents is true and complete to the best of my knowledge. I understand that false statements or omissions may be grounds for termination.

I certify that all information provided is true and complete.

ACKNOWLEDGMENT

Employee confirms receipt of this Agreement and understands its terms. Employee acknowledges that they have had the opportunity to consult with counsel prior to signing.

Employer Printed Name:

By:

Date:

Employee Printed Name:

By:

Date:

What a Territory Manager Employment Agreement Covers

A Territory Manager Employment Agreement is a written contract between an employer and a territory manager that defines job duties, territory boundaries, compensation (salary, commission, bonuses), performance targets, expenses, confidentiality, noncompete or non-solicitation clauses, termination triggers, and post-termination obligations. The document sets expectations for territory assignment, reporting and sales metrics, dispute resolution, and intellectual property ownership where applicable. Clear, complete agreements reduce ambiguity about commission calculations, expense reimbursement, and territory conflicts.

Why this Agreement Matters for Employers and Managers

A well-drafted Territory Manager Employment Agreement protects company revenue and clarifies compensation and territory rights while giving managers predictable pay and defined responsibilities. It helps prevent disputes over commissions and client ownership, supports enforcement of confidentiality and IP protections, and assists compliance with state employment and noncompete rules.

Who typically completes and signs these agreements

Legal, payroll, and finance should review the agreement before execution to confirm commission language, expense policy, tax treatment, and record retention procedures.

HR and Talent Acquisition teams preparing offer packages and managing onboarding tasks.
Sales managers or regional directors assigning territories and setting quotas.
Territory managers or outside sales representatives reviewing compensation and noncompete clauses.

Typical signers and their roles

Hiring Manager

The manager authorizes territory assignments, approves quotas, and often signs on behalf of the regional sales organization. Their signature confirms operational expectations and territory limits.

Territory Manager

The employee signs to accept duties, compensation terms, and any restrictive covenants. Signing binds the manager to post-termination and confidentiality obligations where enforceable by law.

Essential clauses to include in the agreement

These six elements form the backbone of a professional Territory Manager Employment Agreement and should be tailored to reflect the employer’s policies and applicable state law.

Position & Duties

Scope of work, reporting line, expected territories, travel requirements, and measurable performance metrics such as sales targets or call activity.

Compensation

Base salary, commission formulas, bonus eligibility, timing of payments, clawback conditions, and how disputes over calculations are resolved.

Territory Definition

Geographic or account-based boundaries, rules for reassignment, process for resolving overlapping territories, and client ownership on termination.

Expenses & Reimbursement

Which travel, entertainment, and marketing expenses are reimbursable, required receipts, approval workflow, and timing for repayment.

Confidentiality & IP

Nondisclosure obligations, work product ownership, and handling of customer lists or proprietary sales methodologies.

Termination & Post-Termination

At-will or fixed-term status, notice periods, severance triggers, non-solicitation/noncompete clauses (state-law dependent), and return of company property.

Required information to complete the agreement

Employee Name: Full legal name as on government ID

Employer Legal Name: Registered business name and entity type

Effective Date: MM/DD/YYYY start date

Territory Description: City, county, ZIPs, or named accounts

Compensation Terms: Salary, commission %, and payment schedule

Signatory Titles: Name and job title of signing representatives

Step-by-step: completing and executing the agreement

Follow these steps to prepare, review, and finalize a Territory Manager Employment Agreement with minimal friction.

01

Prepare Draft: Assemble role, territory, comp, and policy terms for review.
02

Internal Review: Have HR, payroll, and legal confirm language and tax treatment.
03

Present to Candidate: Share draft and answer questions before final edits.
04

Sign and Store: Execute signatures and retain a copy in secure records.

How to customize and route the agreement online

Typical digital workflow settings streamline signature collection and reduce administrative steps.

Field	Configuration
Signer Order	Sequential or parallel routing depending on approvals required
Authentication	Email link, SMS code, or additional verification for sensitive roles
Automatic Reminders	Schedule reminders at 3, 7, and 14 days to improve completion rates
Storage Location	Designate folder in HR system or document repository

Where to send or file the signed agreement

After execution, follow these routing steps so payroll, HR, and the manager have consistent records.

Employer Copy: Store signed PDF in HR information system and employee file.
Payroll: Send compensation schedule and effective date to payroll for setup.
Manager Copy: Provide the signed agreement and policy attachments to the manager.
Legal Retention: Retain original in a secure records system per retention policy.

Digital signing and distribution considerations

Confirm the vendor supports export of a certificate of completion and retention in your chosen document management system.

File Formats: PDF and DOCX support for editable templates
Integrations: Connectors for HRIS, payroll, and CRM systems
Compliance: Ability to support HIPAA BAA and ESIGN/UETA requirements

Key timing and payroll deadlines to note

Certain dates affect taxation, commission eligibility, and documentation retention; track them from the effective date.

Effective Date + Payroll Setup:

Ensure payroll is set up before the first pay period; allow one full pay cycle for processing

Commission Periods:

Define commission measurement periods and payment lag (e.g., monthly payout after close)

Expense Reimbursement:

Specify submission window (e.g., 30 days) to preserve reimbursement rights

Noncompete Enforcement:

Review post-termination restrictions relative to state notice requirements

Record Retention:

Retain signed agreements per company retention policy and legal requirements

Milestones from offer to active territory management

Sequence the hiring and activation milestones to ensure the territory is managed without interruption.

01

Offer Issued

Candidate receives and reviews the agreement and any exhibits

02

Agreement Signed

Both parties sign; effective date is confirmed

03

Payroll & CRM Setup

Employee record, commission plan, and territory are entered into systems

04

Territory Activation

Sales resources and handoff occur; performance tracking begins

Common mistakes to avoid

Vague commission formulas that create disputes over eligible revenue or timing
Unclear territory boundaries that allow multiple managers to claim the same accounts
Missing links to expense policies and approval processes that delay reimbursement
Failure to align noncompete language with state law, risking unenforceability

Risks and legal consequences of errors or omissions

Wage Claims: Back pay or penalty exposure

Commission Disputes: Arbitration costs and damaged client relationships

Unenforceable Covenants: Invalid noncompete may be struck by courts

Privacy Breaches: HIPAA or data protection fines if PHI mishandled

Tax Reporting Errors: IRS penalties for incorrect payroll or 1099 reporting

Recordkeeping Violations: Regulatory fines for failing to retain required documents

Real-world examples of Territory Manager agreements

These short examples illustrate common configurations and outcomes for different employer needs.

Case Study 1

Mid-size distributor hires an outside territory manager with a 60/40 salary/commission split and defined ZIP-code territories.

Commission paid monthly after invoice collection.
Clarified expense policy and CRM ownership upfront reduced disputes and improved close-to-payment timing within 30 days.

Case Study 2

SaaS vendor assigns named accounts to an enterprise territory manager with accelerators for quota overachievement.

IP assignment for demos included.
Clear non-solicitation language limited post-termination client contact for 12 months and preserved customer relationships during transition.

eSignature vendor comparison relevant to employment agreements

Compare core pricing and capabilities for signing and managing Territory Manager Employment Agreements; signNow is listed first per vendor comparison conventions.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies	Varies	Varies	Varies
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Practical tips for accurate and efficient completion

Adopt these practices to reduce errors, speed approval, and ensure enforceability.

Standardize Templates

Use centrally managed templates to ensure consistent language for commissions, territories, and confidentiality provisions.

Use Clear Territory Definitions

Prefer postal code ranges or named accounts over vague geographic descriptors to avoid overlap.

Document Commission Examples

Include worked examples showing the commission calculation for common transaction types to prevent disputes.

Review for State Law

Have counsel verify noncompete or restrictive covenant language against applicable state statutes before use.

Frequently asked questions about Territory Manager Employment Agreements

Answers to common questions about enforceability, digital signatures, and post-termination restrictions.

Need help? Contact support

Can this agreement be signed electronically?
Yes. Electronic signatures meet federal ESIGN Act standards (15 U.S.C. ch. 96) and UETA in most states when intent, consent, attribution, and retention are demonstrable.
Are noncompete clauses enforceable everywhere?
No. Enforceability varies by state—California severely restricts noncompetes, while other states allow them if reasonable in scope, duration, and geography. Consult state law before relying on such clauses.
Do commissions continue after termination?
It depends on the contract language. Specify whether commissions are payable for deals in progress at termination and define any clawback conditions to avoid disputes.
Is notarization required for an employment agreement?
Not typically. Notarization is generally unnecessary for standard employment agreements unless state law or specific clauses require it for enforceability.
What records should HR keep?
Retain the signed agreement for the employment term plus at least three years; longer periods may apply for tax, HIPAA, or industry-specific regulations.
How to handle disputed commission calculations?
Include a dispute resolution process in the agreement (e.g., internal review, arbitration) and keep documentation of sales approvals, returns, and billing to support calculations.

be ready to get more

Join over 28 million airSlate SignNow users

Sign Now