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