Terminating Sales Representative Agreement upon Failure to Satisfy Quota Clause
(Manufacturer)

Summary

This terminating sales representative agreement upon failure to satisfy quota clause may be included in an employment or commission agreement between an employer and a commissioned sales agent. This template includes practical guidance and drafting notes. This clause provides an employer or manufacturer with the right to terminate a sales representative agreement (1) for any reason after a designated period from the effective date of the agreement upon written notice to the representative, and (2) based upon the sale's representative's failure to meet certain sales performance criteria. For further guidance on sales representative arrangements, see Sales Agency Agreements and Sales Agency Resource Kit.