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.
South Dakota Sales Representative Agreement with Residual Payments for New Customers after Contract Terminates is a legal document that outlines the terms and conditions between a company and its sales representative in South Dakota. This agreement ensures that the sales representative is compensated for their efforts in acquiring new customers even after the termination of their contract. The presence of residual payments means that the sales representative will continue to receive a certain percentage or amount for each sale made by the acquired customers, even if they are no longer actively working for the company. There can be different types of South Dakota Sales Representative Agreements with Residual Payments for New Customers after Contract Terminates, including: 1. Commission-Based Residual Agreement: This type of agreement states that the sales representative will receive a certain percentage of the revenue generated by each sale made by the acquired customers. The commission rate can vary based on the type of product or service being sold. 2. Flat Fee Residual Agreement: In this type of agreement, the sales representative is paid a fixed amount for each sale made by the acquired customers. This ensures a consistent income for the sales representative, regardless of the sale value. 3. Tiered Residual Agreement: This agreement outlines a structured payment system where the sales representative receives different percentages or amounts based on the sales performance of the acquired customers. The payment structure typically has different tiers, rewarding higher performance with increased residual payments. 4. Time-Limited Residual Agreement: This type of agreement specifies a duration during which the sales representative will receive residual payments for new customers. After the specified time period, the residual payments may decrease or cease altogether. 5. Termination Clause: This clause outlines the conditions under which the agreement can be terminated, protecting the interests of both the company and the sales representative. It may include reasons such as breach of contract, loss of customers through unethical practices, or other agreed-upon circumstances. In conclusion, South Dakota Sales Representative Agreement with Residual Payments for New Customers after Contract Terminates ensures that sales representatives are fairly compensated for their efforts in acquiring new customers, fostering a mutually beneficial relationship between the company and its sales force.
