This agreement is for a term of years and terminable at will after the initial term. Sales Representative is to receive a residual commission for sales to new customer (those he brings to the Company) for a certain number of years after this Agreement has expired or been terminated. The appointment of sales representative is nonexclusive since the sale representative will sell for more than one company.
This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
Keywords: Michigan, Sales Representative Agreement, Residual Payments, New Customers, Contract Terminates Description: A Michigan Sales Representative Agreement with Residual Payments for New Customers after Contract Terminates is a legal document that establishes the rights and obligations of a sales representative operating in the state of Michigan. This agreement outlines the terms and conditions regarding the compensation and residual payments that the sales representative will receive for bringing in new customers, even after the termination of the initial contract. There are different types of Sales Representative Agreements with Residual Payments in Michigan, including: 1. Commission-Based Residual Agreement: Under this type of agreement, the sales representative is compensated through a commission structure based on the sales generated from new customers. The representative will continue to receive residual payments, usually a percentage of the sales value, even after the termination of the contract. 2. Flat Fee Residual Agreement: In this agreement, the sales representative receives a fixed residual fee for each new customer acquired during the contract term. This fee continues to be paid out periodically even after the contract terminates, ensuring ongoing compensation. 3. Tiered Residual Agreement: This type of agreement involves a tiered structure where the sales representative's residual payments increase based on the number or value of new customers acquired. The higher the tier reached, the greater the residual payments received post-contract termination. 4. Time-Limited Residual Agreement: This agreement may specify a set time period during which the sales representative will be entitled to residual payments for new customers brought in. After this period, the residual payments may cease or be renegotiated based on mutual agreement. It is crucial for both the sales representative and the company/employer to clearly define the terms of the agreement, including the duration and conditions for residual payments. This helps avoid any misunderstandings or disputes concerning the rights and expectations of the parties involved. In conclusion, a Michigan Sales Representative Agreement with Residual Payments for New Customers after Contract Terminates is a comprehensive legal contract that safeguards the interests of both the sales representative and the company. It ensures that the sales representative continues to receive compensation for the new customers they have brought in, even after the original contractual relationship has ended.
