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.
Rhode Island Sales Representative Agreement with Residual Payments for New Customers after Contract Terminates: Overview and Types A Rhode Island Sales Representative Agreement with Residual Payments for New Customers after Contract Terminates is a contractual agreement between a company and a sales representative in Rhode Island. This agreement outlines the terms and conditions under which the sales representative will promote and sell the company's products or services, as well as the compensation structure, including residual payments for acquiring new customers, which continue even after the termination of the agreement. There are various types of Rhode Island Sales Representative Agreements with Residual Payments for New Customers after Contract Terminates that may exist. Some common ones include: 1. Commission-Based Agreement: This type of agreement specifies that the sales representative will receive a commission on the sales they generate during the contract period, along with the additional benefit of residual payments for any new customers they bring in, even after the contract is terminated. The residual payments can be a percentage of the revenue generated by those customers or a fixed amount per customer. 2. Royalty-Based Agreement: In this type of agreement, the sales representative receives a royalty payment on the ongoing sales from the new customers they acquired during the contract period, even after the termination of the agreement. The royalty payments are typically a percentage of the revenue generated by those customers. 3. Partnership Agreement: A partnership agreement can be established where the sales representative becomes a partner in the company or a related entity. In such cases, they may receive a share of the profits generated from the new customers they brought in, in addition to any other agreed-upon compensation. 4. Renewal Agreement: In certain arrangements, the sales representative is entitled to residual payments for new customers only until the end of the contract term. However, if the agreement is renewed or extended after the initial term, the sales representative may negotiate for continued residual payments beyond the contract termination date. Regardless of the specific type of Rhode Island Sales Representative Agreement with Residual Payments for New Customers after Contract Terminates, these agreements are essential in establishing mutually beneficial relationships between companies and sales representatives. They encourage sales representatives to actively seek new customers and build long-lasting relationships, even after the termination of their contract, resulting in increased revenue and growth for the company. It is important for all parties involved to carefully review and negotiate the terms and conditions of the agreement to ensure clarity, fairness, and legal compliance. Seeking legal advice or assistance from an attorney specializing in sales representative agreements is strongly recommended protecting the interests of both the company and the sales representative.
