As used in this chapter:

1. (1) "Business relationship" means an agreement that governs the relationship of principal and sales representative.

2. (2) "Commission" means:

   1. (a) compensation:

      1. (i) that accrues to a sales representative;
      2. (ii) for payment by a principal; and
      3. (iii) at a rate expressed as a percentage of the dollar amount of sales, orders, or profits; or

   2. (b) any other method of compensation agreed to between a sales representative and a principal including:

      1. (i) fees for services; and
      2. (ii) a retainer.

3. (3) "Principal" means a person who:

   1. (a) engages in any of the following activities with regard to a product or service:

      1. (i) manufactures;
      2. (ii) produces;
      3. (iii) imports;
      4. (iv) sells; or
      5. (v) distributes;
   2. (b) establishes a business relationship with a sales representative to solicit orders for a product or a service described in Subsection (3)(a); and
   3. (c) agrees to compensate a sales representative, in whole or in part, by commission.

4. (4)

   1. (a) Except as provided in Subsection (4)(b), "sales representative" means a person who enters into a business relationship with a principal:

      1. (i) to solicit orders for a product or a service described in Subsection (3)(a); and
      2. (ii) under which the person is compensated, in whole or in part, by commission.

   2. (b) "Sales representative" does not include:

      1. (i) an employee of a principal;
      2. (ii) a person licensed under Title 31A, Insurance Code;
      3. (iii) a person licensed under Title 41, Chapter 3, Part 2, Licensing;
      4. (iv) a person licensed under Title 61, Chapter 2f, Real Estate Licensing and Practices Act;
      5. (v) a person who provides a product or service under a business relationship with a principal that is incident to the purchase or sale of real property; or
      6. (vi) a person who places an order or purchases a product or service for that person's own account for resale.

5. (5) "Terminates" or "termination" means the end of a business relationship between a sales representative and a principal, whether by:

   1. (a) agreement;
   2. (b) expiration of a time period; or
   3. (c) exercise of a right of termination by either the principal or the sales representative.