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.
A San Jose California Sales Representative Agreement with Residual Payments for New Customers after Contract Terminates is a legally binding contract entered into by a sales representative and a company based in San Jose, California. This agreement outlines the terms and conditions under which the sales representative will be compensated for their sales efforts, even after the termination of the contract. The key purpose of this agreement is to incentivize and reward sales representatives for their contributions in acquiring new customers. By offering residual payments after the contract ends, the company aims to compensate the sales representative for the long-term value they bring to the organization. There can be different types of San Jose California Sales Representative Agreements with Residual Payments for New Customers after Contract Terminates, which may include: 1. Commission-based Agreement: This type of agreement specifies that the sales representative will receive a percentage of the revenue generated from the new customers they bring in. The residual payments are calculated based on the total sales value and paid out periodically, even after the termination of the contract. 2. Fixed Residual Payment Agreement: In this type of agreement, a fixed residual payment amount is determined for each new customer brought in by the sales representative. Regardless of the sales revenue generated from those customers, the sales representative will receive a set amount as residual payment post-contract termination. 3. Graduated Residual Payment Agreement: A graduated residual payment agreement stipulates that the residual payment percentage or amount increases over time as the sales representative continues to bring in new customers. This type of agreement is often used to encourage sales representatives to consistently acquire new clients and maintain a long-term relationship with them. The San Jose California Sales Representative Agreement with Residual Payments for New Customers after Contract Terminates typically includes the following key components: 1. Identification of Parties: The agreement clearly states the names and addresses of both the sales representative and the company, along with any other pertinent contact information. 2. Term and Termination: The duration or term of the agreement is specified, including any renewal or termination clauses. Additionally, the terms of termination and notice periods are outlined in this section. 3. Sales Targets and Compensation Structure: The agreement will define the sales targets or goals that the sales representative is expected to achieve. The compensation structure, including the residual payment calculation method, percentage, or fixed amount, is also clearly stated. 4. Non-Competition and Non-Disclosure: To protect the company's interests, the agreement may include clauses that prohibit the sales representative from engaging in any competitive activities or disclosing confidential information during and after the contract term. 5. Intellectual Property: If the sales representative will be representing products or services protected by intellectual property rights, this section will outline the rights and restrictions associated with those assets. 6. Governing Law and Dispute Resolution: The agreement will specify the governing law of the contract and lay out the procedures for dispute resolution, such as negotiation, mediation, or arbitration. It is essential for both parties involved in the agreement to thoroughly review and understand the terms and conditions before signing. Seeking professional legal advice during the drafting and negotiation process is highly recommended ensuring compliance with San Jose, California, laws and regulations.A San Jose California Sales Representative Agreement with Residual Payments for New Customers after Contract Terminates is a legally binding contract entered into by a sales representative and a company based in San Jose, California. This agreement outlines the terms and conditions under which the sales representative will be compensated for their sales efforts, even after the termination of the contract. The key purpose of this agreement is to incentivize and reward sales representatives for their contributions in acquiring new customers. By offering residual payments after the contract ends, the company aims to compensate the sales representative for the long-term value they bring to the organization. There can be different types of San Jose California Sales Representative Agreements with Residual Payments for New Customers after Contract Terminates, which may include: 1. Commission-based Agreement: This type of agreement specifies that the sales representative will receive a percentage of the revenue generated from the new customers they bring in. The residual payments are calculated based on the total sales value and paid out periodically, even after the termination of the contract. 2. Fixed Residual Payment Agreement: In this type of agreement, a fixed residual payment amount is determined for each new customer brought in by the sales representative. Regardless of the sales revenue generated from those customers, the sales representative will receive a set amount as residual payment post-contract termination. 3. Graduated Residual Payment Agreement: A graduated residual payment agreement stipulates that the residual payment percentage or amount increases over time as the sales representative continues to bring in new customers. This type of agreement is often used to encourage sales representatives to consistently acquire new clients and maintain a long-term relationship with them. The San Jose California Sales Representative Agreement with Residual Payments for New Customers after Contract Terminates typically includes the following key components: 1. Identification of Parties: The agreement clearly states the names and addresses of both the sales representative and the company, along with any other pertinent contact information. 2. Term and Termination: The duration or term of the agreement is specified, including any renewal or termination clauses. Additionally, the terms of termination and notice periods are outlined in this section. 3. Sales Targets and Compensation Structure: The agreement will define the sales targets or goals that the sales representative is expected to achieve. The compensation structure, including the residual payment calculation method, percentage, or fixed amount, is also clearly stated. 4. Non-Competition and Non-Disclosure: To protect the company's interests, the agreement may include clauses that prohibit the sales representative from engaging in any competitive activities or disclosing confidential information during and after the contract term. 5. Intellectual Property: If the sales representative will be representing products or services protected by intellectual property rights, this section will outline the rights and restrictions associated with those assets. 6. Governing Law and Dispute Resolution: The agreement will specify the governing law of the contract and lay out the procedures for dispute resolution, such as negotiation, mediation, or arbitration. It is essential for both parties involved in the agreement to thoroughly review and understand the terms and conditions before signing. Seeking professional legal advice during the drafting and negotiation process is highly recommended ensuring compliance with San Jose, California, laws and regulations.
