6 as a rider. We will continue to make these monthly withholdings until we have withheld the total sum of $588,019.52. This amount is for the protected right to earn future commissions on sales of Systems to the customers listed in Attachment B [the customer lists] under this Agreement. It represents the price that the transferor of such rights has set, * * *. No Territory Payback Schedule was executed or attached to the agreement. A proposed payment schedule requiring payment over a 10-year period was sent to petitioner in December 1988, but she rejected it, desiring a longer payback period. No interest rate was ever stated in connection with petitioner's payment obligation. If the agreement was terminated for any reason before petitioner had paid the full amount remaining with respect to the customer account rights assigned to her (the customer bases), petitioner had no further liability for additional payments. However, petitioner's right to future commissions with respect to sales to customers on the lists was subject to reduction depending on the nature of the termination, and any commissions payable were to be reduced by any amounts remaining due as territory repayments. If the commissions earned by a distributor were not sufficient to cover the territory repayments due in that month, as a matter of practice, Safeguard nevertheless would pay the former distributor the amount of the payments due. Safeguard considered any such amounts to be an advance to the current distributor and would deduct such amounts in the future.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011